New owner of Apatin Brewer and Niksic-based Trebjesa - U.S. Molson Coors takes over StarBev

North American brewer Molson Coors beat close rival Asahi on Tuesday to buy east European brewer StarBev from CVC Capital Partners for 2.65 billion euros.

Molson Coors, whose business is concentrated in the mature markets of the United States, Canada and Britain, expects the deal to add to its earnings in the first full year of ownership and give the brewer its first big business in emerging markets.

- The acquisition of StarBev fits squarely into Molson Coors' strategy to increase our portfolio of premium brands and deepen our reach into growth markets around the world - Molson Coors' Chief Executive Peter Swinburn said in a statement.

The beer market in the region is "attractive, with strong historical trends and upside potential," he added.

The deal is valued at around 11 times StarBev's core 2011 profit, or EBITDA, of 241 million euros, from annual sales of around 700 million euros.

Permanent funding for the transaction will take the form of $3 billion in cash and debt and the issue of 500 million euros of convertible debt to the seller, Molson Coors said.

StarBev has operations in nine eastern European nations including the Czech Republic, Serbia, Romania, Bulgaria and Hungary, employing about 4,100 people and producing 13.3m hectoliters of beer annually. Although it has been hit by recent weakness in eastern European economies, it is still seen as a long-term growth story in a rapidly consolidating brewing world. Its portfolio include more than 20 brands, including local labels such as Borsodi, Kamenitza, Bergenbier, Ozusko, Jelen and Niksicko, and it also distributes brands such as Stella Artois, Beck's, Hoegaarden, Lowenbrau and Leffe under license.

The StarBev acquisition is subject to approval from European competition authorities, according to the statement, and is expected to close in the second quarter of 2012.

Apatinska pivara doo Apatin

Industrija piva i sokova Trebjesa doo Nikšić

Molson Coors Brewing Company Canada

Niksic brewer

Molson Coors Brewing

StarBev

Peter Swinburn