SABMiller to acquire Foster's India for Rs 540 cr
India's second largest brewer SABMiller Plc, on Friday said it will acquire Australian beer manufacturer Foster's India operations for a cash consideration of $120 million (about Rs 540 crore).
By PTI |
NEW DELHI: India's second largest brewer SABMiller Plc, on Friday said it will acquire Australian beer manufacturer Foster's India operations for a cash consideration of $120 million (about Rs 540 crore).
The company said it has entered into an agreement with the Foster's Group to acquire its India operations subject to regulatory and other necessary approvals, SABMiller said in a statement.
As per the agreement, which is a cash-free and debt free deal, SABMiller will assume ownership of all Foster's assets in India including the Foster's brand in the territory, the statement said.
"This transaction enhances our existing portfolio in India and provides us with an exciting opportunity to further increase our premium brand offering. The acquisition also supplies much needed capacity to fuel the strong growth we have experienced so far this year," SABMiller Africa and Asia Managing Director Andri Parker said.
Foster's India currently operates one brewery in Aurangabad, Maharashtra with an annual capacity of 350,000 hectolitres.
"This is an outstanding deal for the Foster's Group, struck with one of our most important long-term partners. While the Foster's brand has enjoyed great success in India, the opportunity for us to continue to grow the brand profitably from a small production and distribution base, in a challenging market structure, was limited," Foster's Group President and Chief Executive Officer Trevor O'Hoy said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
