HEINEKEN NV : HEINEKEN signs binding agreement to divest Finnish Hartwall
business to Royal Unibrew
Amsterdam, 11 July 2013 - Heineken N.V. ('HEINEKEN') announced today that it
has signed a binding agreement with Danish Royal Unibrew A/S ('Royal Unibrew')
for the sale of its Finnish multi-beverage business Oy Hartwall Ab
('Hartwall'). The total enterprise value¹ of the transaction amounts to c.
€470 million. The transaction is expected to close in the fourth quarter of
2013 at the latest and is subject to customary closing conditions, including
HEINEKEN and Royal Unibrew have also agreed on the principles of extending
their existing partnership to the effect that, for the next ten years, Royal
Unibrew will obtain a license to brew Heineken® beer for Finland, Estonia,
Latvia and Lithuania. At the moment Royal Unibrew already brews the Heineken®
brand in Denmark and distributes the brand in the Baltic countries. In
addition, Hartwall will remain the exclusive distributor of HEINEKEN's global
and international brands in Finland, including Sol, Strongbow, Newcastle Brown
Ale, Krušovice and Murphy's Irish Stout, and will continue to brew Foster's
beer under license in the country.
Jean-François van Boxmeer, Chairman of the Executive Board/CEO of Heineken
N.V. commented: "We are pleased to announce this transaction, as we are
convinced that Hartwall's future development is best served as part of Royal
Unibrew, our long-time business partner in Denmark and an important beverage
company in the Nordics and Baltics region. We look forward to building on our
business in the region working together with Royal Unibrew."
Henrik Brandt, CEO of Royal Unibrew, added: "We really value Hartwall's market
position, strong brands and considerable innovation, and the acquisition of
Hartwall supports Royal Unibrew's strategy very well. Hartwall and the Finnish
market are in many ways similar to our Danish operations, and we are confident
that, as a long-term focused owner and in close partnership with the company's
management and employees, we will be able to increase Hartwall's commercial
and operational strength and thus improve earnings."
HEINEKEN will utilise the proceeds of the Hartwall divestiture to reduce its
financial leverage, whereby the company is targeting a Net Debt/EBITDA (beia)
ratio of below 2.5 times by the end of 2014, as previously communicated.
As from the end of June, Hartwall is recorded as an asset held for sale and as
such no longer included in HEINEKEN's financial results. HEINEKEN acquired
Hartwall as part of the Scottish & Newcastle transaction in 2008.
¹) The total enterprise value consists of the sum of the equity purchase
price, plus interest and net debt and net debt equivalents assumed by Royal
Hartwall is a leading and innovative player in the Finnish beverage category
with strong market positions in beer, carbonated soft-drinks, waters,
long-drinks, ciders, wines and spirits. The portfolio includes brands such as
Hartwall Jaffa, Novelle, Lapin Kulta, Karjala and Upcider. In 2012, Hartwall
generated net revenues and EBITDA (beia) of approximately €300 million and €50
million, respectively. The company has around 850 employees.
About Royal Unibrew
Royal Unibrew produces, markets, sells and distributes quality beverages
focusing on branded products within beer, malt and soft drinks, including soda
water, mineral water and fruit juices. The company operates as a leading
regional player in a number of markets in Western and Eastern Europe,
including Denmark, Germany, Italy, Lithuania and Latvia, and in international
malt drinks markets. Royal Unibrew's main brands include Royal, Ceres Strong
Ale, Cido, Kalnapilis, Faxe Premium and Vitamalt. In 2012, the company posted
revenue of DKK 3.4 billion (around €455 million) and sold 5.4 million
hectolitres of beer, malt and soft drinks. The group, which is domiciled in
Faxe, Denmark, has around 1,600 employees.
Investor and analyst enquiries
HEINEKEN is a proud, independent global brewer committed to surprise and
excite consumers with its brands and products everywhere. The brand that bears
the founder's family name - Heineken® - is available in almost every country
on the globe and is the world's most valuable international premium beer
brand. The Company's aim is to be a leading brewer in each of the markets in
which it operates and to have the world's most valuable brand portfolio.
HEINEKEN wants to win in all markets with Heineken® and with a full brand
portfolio in markets of choice. The Company is present in over 70 countries
and operates more than 165 breweries with volume of 221 million hectolitres of
group beer sold. HEINEKEN is Europe's largest brewer and the world's third
largest by volume. HEINEKEN is committed to the responsible marketing and
consumption of its more than 250 international premium, regional, local and
specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere
Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's,
Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate,
Tiger and Zywiec. Our leading joint venture brands include Cristal and
Kingfisher. Pro forma 2012 revenue totalled €19,765 million and EBIT (beia)
€3,151 million. The number of people employed is over 85,000. Heineken N.V.
and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange.
Prices for the ordinary shares may be accessed on Bloomberg under the symbols
HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and
HEIO.AS. Most recent information is available on HEINEKEN's website:
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Source: HEINEKEN NV via Thomson Reuters ONE
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