Matt Shattock, president and CEO of Beam, said: “With the synergy-driven addition of Pinnacle, which will become one of our largest Power Brands, Beam will further enhance its ability to maximise value for shareholders.”
The company estimates the acquisition will be approximately neutral to 2012 EPS before charges/gains, and accretive by $0.05-$0.10 per share in 2013, with increasing accretion in 2014 and beyond.
The company anticipates generating an internal rate of return substantially in excess of the double-digit risk-adjusted cost of capital for the transaction.
Beam expects to finance the acquisition with either existing credit facilities or new debt, or a combination of both. The acquisition, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the second quarter of 2012.
Source: Beam
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