Heineken Says Femsa Cerveza Acquisition Will Boost Earnings in Two Years
Heineken NV, the world’s third- biggest brewer by volume, confirmed the acquisition of Femsa Cerveza is expected to boost earnings per share after two years, and said the unit posted 2009 earnings in line with a shareholders’ circular published March 23.
Femsa’s earnings before interest, taxes, depreciation and amortization before some items were 442 million euros ($567 million), Amsterdam-based Heineken said today in a statement. Revenue was 2.47 billion euros. Beer volume was 40.5 million hectoliters. The figures do not purport to represent what Heineken’s actual result of operations would have been if the purchase had occurred on Jan. 1, Heineken said.
Heineken acquired the beer division of Fomento Economico Mexicano SAB on April 30 in an all-stock deal valued at 5.3 billion euros to access faster sales growth in Latin America.
The purchase gave Heineken one of only two beer makers in Mexico, the world’s fourth-most profitable market, and reduces the company’s reliance on slower-growing European markets.
Heineken, which distributes Femsa beers including Dos Equis in the U.S., has said it expects savings of 150 million euros a year by 2013 and will use the acquisition to sell Femsa brands in Europe and Heineken in Latin America.