E-Malt.com News article: United States: AB InBev agrees to sell its entertainment parks

World’s largest brewer Anheuser-Busch InBev and The Blackstone Group announced on October, 7 that a definitive agreement has been reached whereby Anheuser-Busch InBev will sell its entertainment business to Blackstone Capital Partners V L.P. (Blackstone) for up to USD2.7 billion.

The purchase price will be comprised of a cash payment on closing of USD2.3 billion and a right to participate in Blackstone’s return on its initial investment capped at USD400 million.

Under the terms of the agreement, Blackstone will acquire Anheuser-Busch InBev’s wholly owned subsidiary, Busch Entertainment Corporation (BEC), the second largest entertainment park operator in the United States with approximately 25 million annual visitors. BEC operates 10 entertainment parks throughout the United States including three SeaWorld parks in Orlando, Florida, San Antonio, Texas, and San Diego, California, two Busch Gardens parks in Tampa, Florida and Williamsburg, Virginia, and other family entertainment attractions in Orlando, Florida, Tampa, Florida, Williamsburg, Virginia, and Langhorne, Pennsylvania.

Carlos Brito, Chief Executive Officer of Anheuser-Busch InBev, said: “Busch Entertainment Corporation is a high performing asset with a world-class management team, but not a core business for Anheuser-Busch InBev. We are pleased to have reached an agreement with a buyer who understands the industry and has a strategic vision for the business. The sale of BEC represents another important milestone in our commitment to de-leverage the company and will also allow us to continue to focus on our core brewing business.

“The Blackstone Group is a preeminent private equity firm and we are very happy to have reached an agreement with Blackstone. We have great respect for BEC’s management and employees and know they will continue to prosper under Blackstone’s ownership.”

Closing of the transaction is subject to customary conditions, including regulatory clearance. BofA Merrill Lynch, Barclays Capital, Blackstone Advisory & Restructuring Partners, Deutsche Bank Securities Inc. and Goldman Sachs & Co. acted as financial advisors to Blackstone.



09 October, 2009