Anheuser-Busch InBev Becomes Caribbean Leader With $1.2 Billion Deal
Anheuser-Busch InBev has further strengthened its exposure to emerging markets by taking a majority stake in Cerveceria Nacional Dominicana (CND), one of the largest brewers in the Dominican Republic. Anheuser-Busch InBev’s subsidiary AmBev Brasil has formed a strategic alliance with E Leon Jimenes, which owns 83.5% of. CND, to create the leading beverage company in the Caribbean through the combination of their businesses in the region. The combined business will include beer, malt and soft drinks operations in the Dominican Republic, Antigua, Saint Vincent and Dominica, as well as exports to 16 other countries in the Caribbean, the US and Europe.
AmBev Brasil is making a cash payment of approximately $1.0 billion and contributing AmBev Dominicana. The combined entities would have had net revenues of approximately $570 million in 2011 and are expected to have an estimated combined EBITDA for the first 12 months of operations of approximately $190 million, which implies an EV/EBITDA multiple of approximately 13x.
Separately, AmBev Brasil will acquire an additional stake in CND of 9.3%, which is currently owned by Heineken, for $237 million. This deal will increase AmBev Brasil’s indirect interest in CND to approximately 51%.
