News Column

Equity firms to sell Oriental Brewery to AB In-Bev for $5.8 billion

January 20, 2014

Two private equity firms said they would sell South Korean beverage giant Oriental Brewery to Anheuser-Busch InBev for $5.8 billion . The company is owned by KKR & Co. and Affinity Equity Partners . It was first purchased by KKR from AB In-Bev for $1.8 billion in 2009, a year after Belgium's In-Bev purchased the American brewer for $52 billion . Later, KKR sold half of Oriental Brewery , which makes Cass Beer , to Affinity Partners . The Wall Street Journal reported the $5.8 billion sale announced Monday is the largest ever exit from a company by a private equity firm in the Asia . The price for the deal was pre-set, the Journal said, established in 2009, when KKR bought the company. At that point, it was agreed In-Bev would have the rights to buy back the company at a price nearly 11 percent the estimated earnings before tax, depreciation and amortization by July 2014 , sources close to the deal told the Journal. Cass is the best-selling beer brand in South Korea . The company also produces third-party brands, such as Blue Girl, the best-selling beer in Hong Kong and Cass Red , which is the best-selling beer in Mongolia , the Journal said. In the past four years, Oriental Brewery overtook Hite-Jinro Co. as the top-selling South Korean brewer. It also has a strong export business with $63.3 million in export sales in the first six months of 2013.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: UPI Business News

Story Tools