AB InBev sells assets

As part of an agreement reached with the US Justice Department when InBev purchased Anheuser-Busch, the merged company will sell its Labatt USA unit to KPS Capital Partners LP. This satisfies concerns relating to a possible unfair domination of upstate New York’s beer market.

Labatt Brewing, AB InBev’s Canadian arm, is also granting KPS use of the brand in the US. It will brew beers, such as 50 and Blue, on the US company’s behalf for up to three years, though the deal will not affect Labatt’s Canadian operations.

The Belgium-based AB InBev did not disclose a sale price.

In addition to the deal with AB InBev, KPS will also buy High Falls, which handles brands like Genesee, Steinlager and Toohey’s.

KPS will combine Labatt USA and High Falls into a business called North American Breweries, and it is still on the lookout for more beer takeovers.

A further result of the $52 billion merger that created the world’s biggest brewer is its attempt to shed non-core assets. This is currently occuring in South Korea, where the number two beer maker, Oriental Brewery, is being pursued by private equity firms.

AB InBev owns a majority stake in the unlisted OB that it is looking to sell. According to sources, Affinity Equity Partners and MBK Partners have submitted separate offers. The deal could be worth more than $2 billion to the sellers.

Alexis Hercules, 25.02.09