SABMiller and Molson Coors announce MillerCoors leadership team
9 June 2008
SABMiller plc (SAB.L) and Molson Coors Brewing Company (NYSE: TAP; TSX) today announced the MillerCoors leadership team. As previously announced, Leo Kiely, current CEO of Molson Coors, will be the CEO of MillerCoors; Tom Long, current CEO of Miller Brewing Company, will serve as President and Chief Commercial Officer; Tim Wolf, current CFO of Molson Coors, will be the Chief Integration Officer; and Gavin Hattersley, current Senior Vice President of Finance at Miller, will be the Chief Financial Officer.
In addition, the following appointments to the MillerCoors leadership team will become effective upon the closing of the transaction, which is expected to take place June 30, 2008.
- Tom Cardella, Eastern Division President
- Ed McBrien, Western Division President
- Andy England, Chief Marketing Officer
- Dennis Puffer, Chief Operations Officer
- Karen Ripley, Chief Legal Officer
- Jeanine Wasielewski, Head of Information Technology
- Cornell Boggs, Chief Responsibility and Ethics Officer
- Steve Woodward, Chief Human Resources Officer
- Chris Kozina, Chief of Staff
- Nehl Horton, Chief Communications and Government Affairs Officer
Leo Kiely’s direct reports will include Tom Long, Tim Wolf, Gavin Hattersley, Dennis Puffer, Karen Ripley, Cornell Boggs, Steve Woodward and Chris Kozina. In addition, Jake Leinenkugel, President of the Jacob Leinenkugel Brewing Company, will report directly to Leo Kiely.
Tom Cardella, Ed McBrien, Andy England and Nehl Horton will report to Tom Long. In addition, chain accounts, the craft and imports division; distributor consolidation and sales services; revenue management; strategy and M&A; and commercial planning will also report to Tom Long. The leaders of these functions will be named shortly.
Jeanine Wasielewski, Head of Information Technology will report to Tim Wolf. In addition, Kevin Self, Vice President of Integration and Synergies, and Scott Whitley, Vice President of Integration Planning, will report to Tim Wolf.
"People make it happen and I am very excited about this new team,” said Mr. Kiely. “I believe this seasoned and diverse group of leaders is the best in the American beer business. Together, we will create a stronger, more competitive U.S. brewer, with an enhanced portfolio of brands, and the experience and passion needed to win.
“As we continue to name the next levels of leadership, we will tap into the great talent at both Miller and Coors. We have already begun planning the core elements of the integration process, including developing our corporate, sales and marketing structures so we will be able to hit the ground running on July 1st.”
The Miller and Coors businesses will continue to be operated separately and in the ordinary course until completion of the transaction.
Transaction History and Key Facts
On October 9, 2007, SABMiller and Molson Coors Brewing Company announced that they had agreed to combine the U.S. and Puerto Rico operations of their respective subsidiaries, Miller and Coors, in a joint venture.
SABMiller and Molson Coors expect the transaction to generate approximately $500 million in annual cost synergies to be delivered in full by the third full financial year of combined operations. The transaction is expected to be earnings accretive to both companies in the second full financial year of combined operations.
SABMiller and Molson Coors will each have a 50% voting interest in the joint venture and have five representatives each on its Board of Directors. Based on the economic value of the contributed assets, SABMiller will have a 58% economic interest in the joint venture and Molson Coors will have a 42% economic interest.
The companies will host a press conference call and webcast today at 10:00 a.m. ET to discuss MillerCoors and the leadership team announcement. To access the call, participants can dial 866-710-0179 in the U.S. or 334-323-7224 internationally and enter the following pass code: 574235. The live and archived audio webcast will be available at www.sabmiller.com and www.molsoncoors.com.
Overview of SABMiller
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 Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch 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 $ 3,639 million adjusted pre-tax profit and revenue of $ 21,410 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.
For more information on SABMiller plc, visit the company's website: www.sabmiller.com.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world’s largest brewers. It brews, markets and sells a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors, and Keystone Light throughout North America, Europe and Asia. It operates in Canada, through Molson Canada; in the US, through Coors Brewing Company; in the U.K. and Ireland, through Coors Brewers Limited. For more information on Molson Coors Brewing Company, visit the company’s Web site, http://www.molsoncoors.com.
Overview of Miller
Miller produces, markets and sells the Miller portfolio of brands in the U.S. The Miller business to be contributed to the joint venture (the “Miller Business”) does not include the sales of Miller brands outside the U.S., but does include the sale of other SABMiller brands in the U.S.
Overview of Coors
Coors produces, markets and sells the Coors portfolio of brands in the U.S. and Puerto Rico, which is managed as an integral part of the U.S. business, and also holds 50% interests in the Rocky Mountain Metal Corporation and Rocky Mountain Bottle Corporation joint ventures. The Coors business to be contributed to the joint venture (the “Coors Business”) will not include the sales of Coors brands outside the U.S. and Puerto Rico. The business to be contributed does include the sale of other Molson Coors brands in the U.S. and Puerto Rico.
This announcement is for information only and does not constitute an offer or an invitation to acquire or dispose of any securities or investment advice or an inducement to enter into investment activity. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire the securities of SABMiller or Molson Coors (the "Companies") in any jurisdiction.
The distribution of this announcement may be restricted by law. Persons into whose possession this announcement comes are required by the Companies to inform themselves about and to observe any such restrictions.
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws, and language indicating trends, such as “anticipated” and “expected”. It also includes financial information, of which, as of the date of this press release, the Companies’ independent auditors have not completed their review. Although the Companies believe that the assumptions upon which their respective financial information and their respective forward-looking statements are based are reasonable, they can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Companies’ projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission and in SABMiller’s annual report and accounts for the year ended 31 March 2007 and in other documents which are available on SABMiller’s website at www.sabmiller.com. These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to realize anticipated results from synergy initiatives; failure to obtain regulatory consents or other third party approvals; and increases in costs generally. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Neither SABMiller nor Molson Coors undertakes to update forward-looking statements relating to their respective businesses, whether as a result of new information, future events or otherwise. Neither SABMiller nor Molson Coors accepts any responsibility for any financial information contained in this press release relating to the business or operations or results or financial condition of the other or their respective groups.
For further information, please contact:
SABMiller / Miller
Tel: +44 20 7659 0100/ 414 931-6313
Nigel Fairbrass Media Relations, SABMiller
Mob: +44 7799 894265
Molson Coors / Coors
Kabira Hatland Media Relations, Molson Coors Tel: 303 277-2555