Comprehensive M&A data with integrated detailed company information

AB InBev in USD 11.3bn Australian sale
Posted on Friday, 19 July 2019 09:32
Anheuser-Busch InBev (AB InBev) is selling Carlton & United Breweries to Asahi Group in a deal that Zephyr, the M&A database published by Bureau van Dijk, shows is one of the 20 largest ever to target the global beverage manufacturing sector. At an enterprise value of AUD 16.00 billion (USD 11.26 billion), the divestment implies a multiple of 14.9x normalised earnings before interest, tax, depreciation and amortisation (EBITDA) in 2018. The sale is expected to help AB InBev accelerate expansion in other fast-growing markets in Asia Pacific and globally, while creating additional shareholder value by improving its business and deleveraging a heavily-indebted balance sheet. At the end of December 2018, the beverage powerhouse had net debt of USD 102.46 billion and outlined a commitment to bring down its net debt to EBITDA ratio to below 4x by the end of 2020. News of the sale comes a week after AB InBev decided to shelve an initial public offering (IPO) of a minority stake in its Asia Pacific arm, Budweiser Brewing APAC, on the Hong Kong Stock Exchange. The subsidiary got as far as setting a price range on its listing - that Zephyr showed would have been the largest globally of 2019 to date, even based at the bottom end of the scale - before the parent pulled the plans. At the time, the company said it would not proceed with the float due to several factors, including prevailing market conditions, though sources told Reuters investors were put off by the cost. However, AB InBev said in today’s announcement “it continues to believe in the strategic rationale of a potential offering of a minority stake of Budweiser”, excluding Australia, but only “provided that it can be completed at the right valuation.” © Zephus Ltd