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
DENVER & MONTREAL--(BUSINESS WIRE)--
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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Source: Molson Coors Brewing Company