(Brussels, BELGIUM, and Mexico City, MEXICO) – Anheuser-Busch InBev and Grupo Modelo, S.A.B. de C.V. announced this morning an agreement in which AB-InBev will buy out Modelo for $20.1 billion. Some notes on the deal…
1. The largest M&A deal in beer since InBev bought Anheuser-Busch for $52 billion back in 2008 is expected to close in the first quarter of 2013.
2. The deal actually values Grupo Modelo at $32.2 billion though Anheuser-Busch already has more than a 50% non-controlling stake in the company.
3. The purchase price represents a 30% premium of Grupo Modelo’s Series C shares (not the same as market cap).
4. Constellation Brands will buy out its joint venture with Grupo Modelo, Crown Imports, for $1.85 billion as part of the deal. Crown Imports is the sole importer for Grupo Modelo brands in the U.S..
5. Analysts and various media outlets have reported that the deal faces antitrust scrutiny in the U.S. though Grupo Modelo’s sale of Crown Imports may help A-B InBev’s case.
Grupo Modelo notes:
6. Grupo Modelo currently brews and distributes 13 brands, including Corona, the #1 Mexican beer sold in the world, Modelo Especial, Victoria, Pacifico and Negra Modelo.
7. Corona is the fourth largest beer brand in the world.
8. In 2011, Grupo Modelo’s volumes were 56 million hectoliters (47.4 million U.S. beer barrels).
9. Grupo Modelo, founded in 1925, is the leader in Mexico in beer production, distribution and marketing. It has 37,000 employees and a total annual installed capacity of 70 million hectoliters.
10. Grupo Modelo exports six brands and has a presence in more than 180 countries.
11. Grupo Modelo is currently the importer of AB InBev’s products in Mexico.
A-B InBev notes:
12. AB InBev is the leading global brewer and one of the world’s top five consumer products companies, with USD $39 billion in revenue in 2011.
13. AB InBev manages a portfolio of over 200 beer brands – including Global Brands Budweiser, Stella Artois and Beck’s – and holds the #1 or #2 market position in many of the world’s top beer markets.
14. The company is headquartered in Leuven, Belgium, with operations in 23 countries worldwide and 116,000 employees.
15. In 2011, AB InBev’s beer volumes were 353 million hectoliters.
Constellation Brands/Crown Imports notes:
16. Constellation Brands is the third largest alcoholic beverage company in the U.S.
17. Crown’s portfolio of brands includes Corona Extra, Corona Light, Modelo Especial, Pacifico, Negra Modelo and Victoria.
18. Corona Extra is the best-selling imported beer and the sixth best-selling beer overall in the industry.
19. Corona Light is the leading imported light beer and Modelo Especial is the third largest and one of the fastest growing major imported beer brands.
20. During Constellation’s fiscal 2012, Crown sold 164 million cases and generated $2.47 billion of net sales and $431 million of operating income.
The combined company has…
21. Total volumes of 409 million hectoliters (348.5 million U.S. beer barrels).
22. Revenue of $46.8 billion and EBITDA of $18.1 billion.
23. Approximately 150,000 employees.
24. 17 brands worth $1 billion or more.
25. Seven of the top ten most valuable beer brands in the world (per MillwardBrown): Bud Light, Budweiser, Corona, Skol, Stella Artois, Brahma and Beck’s.