FDBusiness.com

Anheuser-Busch InBev has agreed to divest Carlton & United Breweries (CUB), its Australian subsidiary, to Asahi Group Holdings for Au$16.0 billion, (US$11.3 billion) in enterprise value. The transaction represents an implied multiple of 14.9x 2018 normalised EBITDA.

As part of this transaction, AB InBev will grant Asahi Group Holdings rights to commercialise the portfolio of AB InBev’s global and international brands in Australia. The deal is expected to close by the first quarter of 2020.

Substantially all of the proceeds from the divestiture of the Australian business will be used by the AB InBev to pay down debt. AB InBev’s commitment to reach a net debt to EBITDA target ratio of below 4x by the end of 2020 is not dependent on the completion of this transaction.

The divestiture of CUB, once completed, will also help AB InBev to accelerate its expansion into other fast-growing markets in the Asia Pacific (APAC) region and globally.

AB InBev had been considering a public offering of a minority stake in its Asia Pacific subsidiary, Budweiser Brewing Company APAC, on the Hong Kong Stock Exchange. However, the company decided against proceeding with the offering due to several factors, including the prevailing market conditions.

Carlos Brito, chief executive of AB InBev, says: “We continue to see great potential for our business in APAC and the region remains a growth engine within our company. With our unparalleled portfolio of brands, strong commercial plans and talented people, we are uniquely positioned to capture opportunities for growth across the APAC region.”