SABMiller plc announces expansion in Russia
10 June 2008
SABMiller plc (“SABMiller”) announces that it has agreed to acquire the Russian brewer LLC Vladpivo (“Vladpivo”). The transaction is subject to customary pre-closing conditions.
Vladpivo, the largest brewer in the Russian far east Primorie region, is located near the city of Vladivostok and has an annual capacity of 1 million hectolitres. The value of the gross assets to be acquired is approximately US$69 million. The purchase price is not being disclosed.
The Russian far east represents approximately 7.6% of the Russian beer market and is projected to grow faster than the total Russian beer market from 2007 to 2013. This acquisition will accelerate SABMiller’s growth in the region and increase the geographic penetration of the group’s worthmore portfolio.
James Wilson, Managing Director of SABMiller RUS, said: “The acquisition of Vladpivo complements our existing capability and will allow us to expand the presence of our worthmore brands, by providing us with a more competitive logistics configuration and better access to our consumers in this important and attractive region.”
Vladpivo will become SABMiller’s third production facility in the country, in addition to its main brewery in Kaluga and the site in Ulyanovsk which is currently under construction and expected to be commissioned in early 2009. In advance of production of SABMiller RUS's premium portfolio, the brewery will undergo a substantial programme of investment aimed at achieving SABMiller's international manufacturing standards.
Vladpivo is beneficially owned by a consortium consisting of A1, Detroit Investments and the IFC.
About SABMiller plc
SABMiller plc is one of the world’s largest brewers with brewing interests or distribution agreements in over 60 countries across six continents. The group’s brands include premium international beers such as Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2008, the group reported US$3,639 million adjusted pre-tax profit and revenue of US$21,410 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
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