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HEINEKEN ACQUIRES GALAXY PUB ESTATE IN UNITED KINGDOM
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Summary
HEINEKEN announces that it has acquired the Galaxy Pub Estate in the U.K. from The Royal Bank of Scotland (‘RBS’) for £412 million (€480 million). Amsterdam – 2 December 2011/V-Newswire/ –HEINEKEN N.V.
announced today that it has acquired the Galaxy Pub Estate (‘Galaxy’) in
the U.K. from The Royal Bank of Scotland (‘RBS’) for £412 million (€480
million) on a cash-and-debt-free basis. A further £10 million (€12
million) has been paid to settle accrued amounts owed under an existing
management agreement between RBS and HEINEKEN.
Galaxy consists of 918 high-quality, largely freehold pubs
and has been managed by Scottish & Newcastle Pub Company
(‘S&NPC’), a HEINEKEN subsidiary, since 1999 on behalf of RBS.
Galaxy will be combined with HEINEKEN U.K.’s existing portfolio of 462
outlets. Following this acquisition, HEINEKEN will become one of the
leading pub owners and operators in the U.K.
The provisional fair value of the pubs on HEINEKEN’s balance
sheet will be £378 million (€441 million), implying a multiple of 7.2
times based on a trailing 12-month EBITDA of £52.3 million (€61.0
million) for the estate. The early amortisation and termination of
associated contracts under the acquisition is expected to give rise to a
one-off, pre-tax P&L expense for HEINEKEN in 2011 of £28 million
(€33 million). This will be treated as an exceptional item in the fourth
quarter of 2011. HEINEKEN expects the acquisition to be earnings
accretive from December 2011 and value enhancing in the first year after
completion.
Commenting on the transaction, Didier Debrosse, Regional
President Western Europe for HEINEKEN, said: “Today’s acquisition of
Galaxy is consistent with our strategy of driving future value growth in
Europe and represents another step in the successful turnaround of our
U.K. business. Our ownership of this estate strengthens our leading
position in the U.K. beer and cider market, particularly in the valuable
on-trade channel.â€
Stefan Orlowski, Managing Director of HEINEKEN U.K., added:
“There continues to be an important role for the great British pub in
the U.K. on-trade, and this acquisition is a significant vote of
confidence in the channel. Owning the Galaxy freehold will allow us to
continue the successful transformation of our pub business, concentrate
on operational excellence and deliver long-term value from a
high-quality, well invested pub estate.â€
The agreement has no impact on S&NPC’s existing lessees, who will continue to trade on a ‘business as usual’ basis.
Source: www.heinekeninternational.com |
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