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| Mmmm... beer. CVC will brew and distribute a number of ABI’s brands |
In a sign that central and eastern Europe is increasingly on the radar screens of even the biggest private equity firms, CVC Capital Partners completed its first deal in the region in December. CVC Capital Partners, which manages companies with annual sales of more than $125 billion, is buying the central and eastern European operations of Anheuser-Busch InBev (ABI), one of the world’s largest brewers, in a deal worth an initial $2.2 billion. As part of the purchase agreement, though, CVC has the right to increase its investment by $800 million in line with returns made on the initial acquisition.
As a result of the deal CVC will own breweries in Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Montenegro, Romania, Serbia and Slovakia. The private equity firm has also agreed to brew and distribute international beer brands Stella Artois, Beck’s, Löwenbräu, Hoegaarden, Spaten and Leffe under licence from ABI.
Istvan Szoke, head of central and eastern Europe at CVC in London, says: "The acquisition marks the first investment in the region for CVC and we are delighted to acquire such a strong business with iconic brands, experienced management and dedicated employees.