SABMiller plans to buy Royal Grolsch for $1.2 billion, with plans to expand sales of the 392-year-old Dutch beer brand in Latin America and South Africa.
Grolsch accepted a bid – subject to shareholder approval in January – of 48.25 euros a share in cash, London-based SABMiller said. That’s a premium of 79% over its previous closing price.
“The deal is expensive,”‘ said Marcel Hooijmaijers, an analyst at Landsbanki Kepler in Amsterdam. Buying Grolsch is “smart”‘ because SABMiller “completes its premium brand portfolio with a northern European brand,” he said.
“We see significant potential for the brand across Africa and Latin America where the premium sector is still in its infancy,”‘ Malcolm Wyman, SABMiller’s chief financial officer, said on a conference call.
Last month Miller agreed to combine its U.S. operations with Molson Coors Brewing Co.