Amsterdam, 11 July 2013 - Heineken N.V. ('HEINEKEN') announced today that it has signed a binding agreement with Danish Royal Unibrew A/S ('Royal Unibrew') for the sale of its Finnish multi-beverage business Oy Hartwall Ab ('Hartwall'). The total enterprise value¹ of the transaction amounts to c. €470 million. The transaction is expected to close in the fourth quarter of 2013 at the latest and is subject to customary closing conditions, including anti-trust approvals.
HEINEKEN and Royal Unibrew have also agreed on the principles of extending their existing partnership to the effect that, for the next ten years, Royal Unibrew will obtain a license to brew Heineken® beer for Finland, Estonia, Latvia and Lithuania. At the moment Royal Unibrew already brews the Heineken® brand in Denmark and distributes the brand in the Baltic countries. In addition, Hartwall will remain the exclusive distributor of HEINEKEN's global and international brands in Finland, including Sol, Strongbow, Newcastle Brown Ale, Krušovice and Murphy's Irish Stout, and will continue to brew Foster's beer under license in the country.
Jean-François van Boxmeer, Chairman of the Executive Board/CEO of Heineken N.V. commented: "We are pleased to announce this transaction, as we are convinced that Hartwall's future development is best served as part of Royal Unibrew, our long-time business partner in Denmark and an important beverage company in the Nordics and Baltics region. We look forward to building on our business in the region working together with Royal Unibrew."
Henrik Brandt, CEO of Royal Unibrew, added: "We really value Hartwall's market position, strong brands and considerable innovation, and the acquisition of Hartwall supports Royal Unibrew's strategy very well. Hartwall and the Finnish market are in many ways similar to our Danish operations, and we are confident that, as a long-term focused owner and in close partnership with the company's management and employees, we will be able to increase Hartwall's commercial and operational strength and thus improve earnings."
HEINEKEN will utilise the proceeds of the Hartwall divestiture to reduce its financial leverage, whereby the company is targeting a Net Debt/EBITDA (beia) ratio of below 2.5 times by the end of 2014, as previously communicated.
As from the end of June, Hartwall is recorded as an asset held for sale and as such no longer included in HEINEKEN's financial results. HEINEKEN acquired Hartwall as part of the Scottish & Newcastle transaction in 2008.
¹) The total enterprise value consists of the sum of the equity purchase price, plus interest and net debt and net debt equivalents assumed by Royal Unibrew.
Hartwall is a leading and innovative player in the Finnish beverage category with strong market positions in beer, carbonated soft-drinks, waters, long-drinks, ciders, wines and spirits. The portfolio includes brands such as Hartwall Jaffa, Novelle, Lapin Kulta, Karjala and Upcider. In 2012, Hartwall generated net revenues and EBITDA (beia) of approximately €300 million and €50 million, respectively. The company has around 850 employees.
About Royal Unibrew
Royal Unibrew produces, markets, sells and distributes quality beverages focusing on branded products within beer, malt and soft drinks, including soda water, mineral water and fruit juices. The company operates as a leading regional player in a number of markets in Western and Eastern Europe, including Denmark, Germany, Italy, Lithuania and Latvia, and in international malt drinks markets. Royal Unibrew's main brands include Royal, Ceres Strong Ale, Cido, Kalnapilis, Faxe Premium and Vitamalt. In 2012, the company posted revenue of DKK 3.4 billion (around €455 million) and sold 5.4 million hectolitres of beer, malt and soft drinks. The group, which is domiciled in Faxe, Denmark, has around 1,600 employees.
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HEINEKEN is a proud, independent global brewer committed to surprise and excite consumers with its brands and products everywhere. The brand that bears the founder's family name - Heineken® - is available in almost every country on the globe and is the world's most valuable international premium beer brand. The Company's aim is to be a leading brewer in each of the markets in which it operates and to have the world's most valuable brand portfolio. HEINEKEN wants to win in all markets with Heineken® and with a full brand portfolio in markets of choice. The Company is present in over 70 countries and operates more than 165 breweries with volume of 221 million hectolitres of group beer sold. HEINEKEN is Europe's largest brewer and the world's third largest by volume. HEINEKEN is committed to the responsible marketing and consumption of its more than 250 international premium, regional, local and specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. Our leading joint venture brands include Cristal and Kingfisher. Pro forma 2012 revenue totalled €19,765 million and EBIT (beia) €3,151 million. The number of people employed is over 85,000. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com.