Molson Coors buys StarBev for $3.5B US

Molson Coors Brewing Company will pay US$3.5 billion to acquire StarBev, giving the Canadian-American beer maker a new base in Europe and adding more than 20 brands to its portfolio.

The deal, announced from London, will add nine breweries and 4,100 employees in several countries to Molson Coors, one of the biggest beer companies in the United States and Canada.

Molson Coors expects the deal will add to its earnings in the first full year of operations and result in $50 million of synergies by 2015, reflecting a combination of cost reductions and business growth.

StarBev had sales totalling about US$1 billion last year and had US$322 million in profit, after adjustments.

"The acquisition of StarBev fits squarely into Molson Coors' strategy to increase our portfolio of premium brands and deepen our reach into growth markets around the world," Molson Coors CEO Peter Swinburn said in a statement.

Molson Coors is acquiring the business from CVC Capital Partners Ltd., which operates several funds that have owned StarBev since 2009.

StarBev chief executive Alain Beyens said he's happy the European beer maker will become part of one of the world's largest brewers.

"It has been great to work with CVC as we have developed and grown this business over the last few years. Their support has enabled StarBev to become a leading innovator of world-class brands.

"Iam convinced Molson Coors will take StarBev to the next level of development and growth," Beyens said.

The transaction, announced Tuesday in London, is expected close in the second quarter of 2012, assuming it gets approvals from European competition authorities.

Following the close, StarBev will be operated as a separate business unit within Molson Coors and will be headquartered in the Czech Republic. It currently has headquarters in Amsterdam and Prague.

It has brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary, Montenegro and also conducts operations in Bosnia-Herzegovina and Slovakia.