This agreement returns OB to the AB InBev portfolio after AB InBev sold the company in July 2009, following the combination of InBev and Anheuser-Busch, in support of the company’s deleveraging target.
AB InBev will reacquire OB earlier than July 2014, as it was originally entitled to under the 2009 transaction.
“We are excited to invest in South Korea and to be working with the Oriental Brewery team again,” said Carlos Brito, AB InBev CEO. “OB will strengthen our position in the fast-growing Asia Pacific region and will become a significant contributor to our Asia Pacific Zone.
OB will continue to be led by In-soo Chang, CEO, and will remain headquartered in South Korea under its current name. OB will become a part of AB InBev’s Asia Pacific Zone, led by zone president Michel Doukeris.
The enterprise value for the transaction is US $5.8bn, and as a result of an agreement entered into with KKR and Affinity in 2009, AB InBev will receive approximately $320m in cash at closing from this transaction, subject to closing adjustments according to the terms of the transaction.
OB estimates its Ebitda in 2013 was approximately KRW 529bn or approximately $500m at current exchange rates.
“The management team at OB has done a tremendous job of growing the business over the last few years into the leader it is today in South Korea. We look forward to working with the OB team to continue to build AB InBev brands in South Korea, provide additional consumer choice and share best practices. In addition, we expect to be strong contributors to the Korean economy and community, fulfilling our global commitment to establish AB InBev as a leading corporate citizen in the markets in which we operate.”
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