Heineken N.V. announced today that it has signed an agreement to acquire 100% of Baikal Beer Company in Irkutsk, Russia.

The transaction will be funded from available cash resources and is subject to regulatory approval. The acquisition will be earnings enhancing in 2006 and is value enhancing in 2011. As agreed by both parties the acquisition price will not be disclosed.

As a result of this transaction, the market share of Heineken in Russia will grow to 10.6%, with volumes over 8.5 million hectolitres, further strengthening the number three position of Heineken in the world’s fifth largest and rapidly growing beer market.

Jean François van Boxmeer, member of the Executive Board of Heineken N.V. commented: "Acquisition of the Baikal brewery further strengthens Heineken’s network of regional production and distribution units spread over Russia and will enable Heineken to acquire a leading position in the Eastern part of the Siberian region."

The Baikal brewery is located in Irkutsk, situated in Siberia, which accounts for 6.3% of the total beer market. The Baikal Brewery is the only significant brewery in Eastern Siberia. The brewery has a sales capacity of 1 million hectoliters, which can be upgraded to 2 million hectoliters. The portfolio consists of the regional beer brands including Zhigulevskoye, Yantarnoe, Rizhskoe, Komanda, Gubernatorskoe, and Brandmayor, which represented a total volume of 557,000 hectolitres of beer. In 2004, national market share of Baikal Brewery was 0.6% and market share in the Siberian region was 13%.

Since August 2004, Heineken has acquired Volga brewery in Nizhny Novgorod (Northwest of Volga), Shikhan Brewery in Sterlitamak (Southeast of Volga), Sobol brewery in Novosibirsk (West Siberia) and Patra Brewery in Yekaterinburg (Urals). Recently, Heineken announced the signed agreement to acquire Stepan Razin Brewery in St. Petersburg (North-West) and today Heineken announced it has signed an agreement to acquire Baikal Brewery in Irkutsk (East Siberia).

Following the closure of the acquisitions of both the Stepan Razin and Baikal Breweries, Heineken in Russia will hold a portfolio of the international and national brands: Heineken, Buckler, Bochkarev, Ohota, Stepan Razin, Löwenbrau (the latter is brewed under license), Draught Guinness and Kilkenny (distribution from 1 July 2005) and the regional brands Shikhan, Sedoy Ural, Solyanaya Pristan, Okskoye, Volga, Rusich, Sobol, Patra, Strelets, Zhigulevskoye, Kalinkin, Ordinar, Yantarnoe, Rizhskoe, Komanda, Gubernatorskoe and Brandmayor.

The Russian beer market is expected to grow by more than 5% to over 89 million hectolitres in 2005.


Editorial information

Heineken N.V. is the most international brewer in the world. The Heineken brand is sold in almost every country in the world and the company owns over 115 breweries in more than 65 countries with a total sales volume of 113 million hectolitres in 2004. Heineken strives for an excellent sustainable financial performance through marketing a portfolio of strong local and international brands with the emphasis on the Heineken brand, through a carefully selected combination of broad and segment leadership positions and through a continuous focus on cost control. In 2004 net turnover amounted to Eur10.1 billion and net profit before exceptional items and amortisation of goodwill amounted to Eur803 million. Heineken employs over 60,000 people. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange.

Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIN NA and HEHN NA and on the Reuter Equities 2000 Service under HEIN.AS and HEHN.AS. Additional information is available on Heineken’s home page: http//www.heinekeninternational.com
Bron : Heineken