Anheuser-Busch InBev Announces Sale of Scottish and Irish Assets

Anheuser-Busch InBev (Euronext: ABI) announced today that it has signed an agreement to sell the Tennent’s Lager brand and associated trading assets in Scotland, Northern Ireland and the Republic of Ireland (part of InBev UK Limited) to C&C Group plc (“C&C”) for a total enterprise value of £180 million, representing 8.3x 2008 Pro-Forma Normalized EBITDA.

Included in the sale are the Glasgow Wellpark Brewery in Scotland, where Tennent’s Lager is brewed, rights to the Tennent’s Lager brand itself, Tennent’s Ales and assets located in Scotland, Northern Ireland and the Republic of Ireland which currently belong to Anheuser-Busch InBev. The remainder of Anheuser-Busch InBev’s UK business located in England and Wales is not part of this transaction and will remain part of InBev UK Limited. As part of the agreement, Anheuser-Busch InBev will appoint C&C as distributor of certain Anheuser-Busch InBev brands in Scotland, Northern Ireland and the Republic of Ireland, and C&C will grant Anheuser-Busch InBev the right to use the Tennent’s Super and Tennent’s Pilsner brands in certain worldwide geographies.

Carlos Brito, Chief Executive Officer of Anheuser-Busch InBev, said: "The sale of these assets will unlock value for our shareholders and ensure continued support for our global brands in the region through distribution agreements with key partners. C&C is a strong strategic buyer who is well-positioned to invest in and advance these assets within their respective geographies.”

The transaction is subject to approval by C&C shareholders, completion of employee consultation, and applicable regulatory and other customary approvals. The parties expect to complete the transaction by the end of this year.