SABMiller plc, the London-based parent company of Miller Brewing Co., announced today it plans to buy Koninklijke Grolsch N.V., a Dutch brewer, for $1.2 billion to expand its portfolio of premium beers, the fastest-growing segment of the world beer market.
Grolsch is a 400-year-old iconic brewer. In addition to the beer that bears its own name, Grolsch also produces Spring Bock and Autumn Bock beers.
SABMiller plans to bring Grolsch into new markets, notably in Africa and Latin America, where the premium segment is still in its infancy, as well as Central and Eastern Europe.
Commenting on the transaction, Graham Mackay, chief executive of SABMiller, said, "Grolsch will provide SABMiller with a powerful addition to its international brand portfolio. Within the SABMiller family Grolsch will continue to build on almost 400 years of brewing heritage, and together we will establish new positions in the most important emerging beer markets around the world. Both companies share a passion for the brewing tradition, and we are delighted to be part of this new chapter in Grolsch's development."
Ab Pasman, chief executive of Grolsch, said, "In addition to financial considerations it was important for us to give a lot of attention to the interests of our employees, customers and our home region. We were doing a good job executing our independent strategy. When we were asked to consider SABMiller's proposal the key question was if greater value could be achieved than through our own existing strategy. Since this appeared to be the case we entered into discussions and we believe that SABMiller's intended Offer delivers benefits to all of our stakeholders. We look forward to continuing to build our position as a premium brand within the new family."
Miller is in the midst of a proposed merger with Molson Coors Brewing Co.
Miller Brewing to acquire Grolsch
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