Molson Coors Completes Acquisition of Full Ownership of MillerCoors and Global Miller Brand Portfolio
October 11 2016 - 9:00AM
Business Wire
Becomes World’s Third Largest Brewer by
Enterprise Value and Strengthens Position in Highly Attractive U.S.
Beer Market
Well Positioned to Execute Growth Strategy
and Deliver Long-Term Shareholder Value
Confirms Outlook for Seamless Integration of
MillerCoors
Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) (“Molson
Coors” or “the Company”) today announced the successful completion
of its previously announced acquisition of SABMiller plc’s (LSE:
SAB; JSE: SAB) (“SABMiller”) 58% stake in MillerCoors LLC
(“MillerCoors”), the joint venture formed in the United States and
Puerto Rico by both companies in 2008.
As part of the transaction, Molson Coors also gains full
ownership of the Miller brand portfolio outside of the U.S. and
Puerto Rico, and retains the rights to all of the brands currently
in the MillerCoors portfolio for the U.S. and Puerto Rico,
including Redd’s and import brands such as Peroni, Grolsch and
Pilsner Urquell.
Molson Coors is now the third largest global brewer by
enterprise value and the sole owner of MillerCoors, which will
continue to operate as separate business unit of Molson Coors and
will retain its name and headquarters in Chicago.
“Today represents a historic moment in the evolution of Molson
Coors as we emerge as the world’s third largest brewer by bringing
together Molson Coors and MillerCoors into a bigger, better
organization,” stated Mark Hunter, president and chief executive
officer of Molson Coors. “As one company with an expanded portfolio
of iconic brands and a highly focused leadership team, we intend to
leverage our increased scale, resources and combined commercial
experience to accelerate our First Choice agenda and deliver long
term shareholder value.”
Hunter concluded, “Having successfully operated the MillerCoors
joint venture since 2008, we know the business well and have been
working to ensure that today represents a seamless transition for
our customers, partners, distributors and employees. It will really
be business as usual, with an energized team that is playing to win
and committed to setting the bar even higher for the future of our
business.”
Molson Coors has been advised by Kirkland & Ellis LLP,
Cleary Gottlieb Steen & Hamilton LLP, McCarthy Tétrault,
Perkins Coie LLP and UBS Investment Bank.
About Molson Coors
Molson Coors Brewing Company is a leading international brewer
delivering extraordinary brands that delight the world's beer
drinkers. It brews, markets and sells a portfolio of leading
premium brands such as Coors Light, Miller Lite, Molson Canadian,
Carling, Staropramen and Blue Moon across The Americas, Europe and
Asia. It operates in Canada through Molson Coors Canada; in the US
through MillerCoors; across Europe through Molson Coors Europe; and
outside these core markets through Molson Coors International. The
company was listed on the Dow Jones Sustainability World Index for
the past five years and named global Beverage Sector Leader in 2012
and 2013. For the past two years, the company was the only alcohol
producer recognized on the Index for world class sustainability
performance. For more information on Molson Coors Brewing Company
visit the company's website, http://molsoncoors.com or
http://ourbeerprint.com
Forward Looking Statement
This presentation includes estimates or projections that
constitute “forward-looking statements” within the meaning of the
U.S. federal securities laws. Generally, the words “believe,”
"expect,” "intend,” "anticipate,” “project,” “will,” and similar
expressions identify forward-looking statements, which generally
are not historic in nature. Although the Company believes that the
assumptions upon which its forward-looking statements are based are
reasonable, it can give no assurance that these assumptions will
prove to be correct. Important factors that could cause actual
results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed
in the Company’s filings with the Securities and Exchange
Commission (“SEC”). These factors include, among others, our
ability to successfully integrate the acquisition; our ability to
achieve expected tax benefits, accretion and cost synergies; impact
of increased competition resulting from further consolidation of
brewers, competitive pricing and product pressures; health of the
beer industry and our brands in our markets; economic conditions in
our markets; additional impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to
operations in developing and emerging markets; changes in legal and
regulatory requirements, including the regulation of distribution
systems; fluctuations in foreign currency exchange rates; increase
in the cost of commodities used in the business; the impact of
climate change and the availability and quality of water; loss or
closure of a major brewery or other key facility; our ability to
implement our strategic initiatives, including executing and
realizing cost savings; our ability to successfully integrate newly
acquired businesses; pension plan costs; failure to comply with
debt covenants or deterioration in our credit rating; our ability
to maintain good labor relations; our ability to maintain brand
image, reputation and product quality; lack of full-control over
the operations of MillerCoors and other risks discussed in our
filings with the SEC, including our Annual Report on Form 10-K for
the year-ended December 31, 2015, which is available from the SEC.
All forward-looking statements in this press release are expressly
qualified by such cautionary statements and by reference to the
underlying assumptions. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We do not undertake to update forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161011005292/en/
Molson CoorsInvestor Relations:Dave Dunnewald,
303-927-2334orMedia:Colin Wheeler, 303-927-2443
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