BELARUS NEWS AND ANALYSIS

DATE:

22/05/2008

Heineken to acquire Rechitsa brewery in Belarus

Heineken is planning to acquire the Rechitsa brewery in Belarus. Under the terms of the transaction, Heineken has agreed to invest $9.9 million in an increase in the share capital of Rechitsa, ultimately leading to a 51% share in the company.

The transaction is to be financed from existing credit facilities and will be earnings enhancing and value enhancing in 2010, the company said.

The Rechitsa brewery has a technical capacity of 525,000 hectoliters and employs 588 staff. The business also operates a maltery, with a capacity of 10,000 tons. Its portfolio consists of the beer brand Rechitsa and its six sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG, which has three variants.

Nico Nusmeier, Heineken's regional president for central and eastern Europe, said: "Following the acquisition of Syabar in December 2007, this transaction underlines our confidence in the potential of the Belarus beer market."

Source:

http://www.drinks-business-review.com/article_news.asp?guid=E78C1F03-2061-4DB6-A6BE-28D55C8519C5

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