Heineken N.V. announced the acquisition of the Cypriot holding company of the Syabar Brewing Company based in Bobruisk.
Under the terms of the transaction, Heineken will acquire Syabar's Cypriot parent company from a consortium led by Detroit Investments Limited (Cyprus) and from the International Finance Corporation, an affiliate of the World Bank. The acquisition price is not disclosed. The transaction will be funded from existing cash resources and will be earnings enhancing in 2008 and value enhancing in 2012, reads the press release of Heineken.
Nico Nusmeier, Regional President Central and Eastern Europe, Heineken N.V., commented: "This transaction is in line with our strategy to obtain leading market positions and brands. Belarus is a fast growing market and this deal will give us an excellent platform from which to grow both the Heineken brand as well as our imported Russian brands."
As formerly reported by Interfax, in July 2007 Syabar expanded the annual production capacity by 100% to 12 million decalitres.
Today Syabar offers beer under Bobrov brand, which comes in three kinds: Bobrov Light, Bobrov Heavy, Bobrov Classical. The beers are available in glass and PAT bottles with ranging capacity 0.5-2 litres. Besides, the company makes two kinds of beer under Syabar brand: Original and Light.
Syabar is the second largest brewery in Belarus with a market share of 15.4%. In January-November 2007 the company produced 5.08 million deciliters of beer, or 51.6% up on the year.
Syabar Brewery CJSC JV (previously known as Belarusian Brewery CJSC JV) was registered in February 2004. The company was set up by Detroit-Belarus Brewing Company LLC (DBB Company), whose founders are American investment group Detroit Investment Ltd. and the International Finance Corporation, and Dednovo OJSC (Bobruisk, Mogilev Region).
The company has BYR 18 billion in statutory capital and over $23 million in assets.
According to Heineken, Belarus' beer market is showing double-digit growth. Annual consumption is currently estimated at almost 4.5 million hectolitres. Current estimated per capita consumption is 45 litres.
Heineken N.V. is one of the world's leading brewing companies. In 2006 Heineken owned 130 breweries in 65 countries. In addition to the world famous Heineken and Amstel, the company has over 170 international and local beer brands.