E-Malt.com News article: UK: SABMiller to launch public offering for Grolsch

SABMiller plc, the owner of Miller Brewing Co., announced January 7 will launch its previously announced agreement to buy all outstanding shares of the Dutch brewer Grolsch on Tuesday with a public offering slated to expire Feb. 5.

Anheuser-Busch is the exclusive U.S. importer of Grolsch, which includes the entire Grolsch brand line-up, including Grolsch Amber Ale, Grolsch Light Lager and Grolsch Blonde Lager.

The companies do not anticipate a change in the existing distribution agreements for the brand in the United States, the United Kingdom, Canada, Australia and certain smaller markets.

On Nov. 19, 2007, London-based SABMiller agreed to buy all outstanding shares of Koninklijke Grolsch NV, of Amsterdam, for 48.25 euros per share, or 816 million euros. The offer is valued at about $1.2 billion and runs from 9 a.m. Jan. 8 to 3 p.m. Feb. 5, Amsterdam time.

The management board of Grolsch has approved the agreement and is recommending acceptance of the offer to shareholders.

In a statement issued Monday, SABMiller said it may extend the offer period by two to four weeks, if necessary.

SABMiller has said it plans to grow the Grolsch brand, most notably in Africa and Latin America, as well as in Central and Eastern Europe. Production is expected to increase at its brewery in Enschede, Netherlands, where Grolsch is based.

Grolsch is an iconic Dutch beer brand with nearly 400 years of brewing heritage and a strong position in the Netherlands. Grolsch is sold in a distinctive green bottle with a swing-top reclosable cap. Grolsch Premium Pilsner accounts for more than 90 percent of its sales. The brewer also produces Grolsch Premium Weizen, Spring Bock and Autumn Bock as well as the Amsterdam brand.

Grolsch's annual sales are more than 300 million euros, or about $440 million.

St. Louis-based Anheuser-Busch Cos. Inc., through its Anheuser-Busch Inc. subsidiary, is the leading domestic brewer, holding a 48.8 percent share of U.S. beer sales. The company brews the world's largest-selling beers, Budweiser and Bud Light.


09 January, 2008