SABMiller to acquire Dutch beer maker Koninklijke Grolsch

19 November 2007

The world''s third largest brewer, UK-based, SABMiller is buying Dutch beer maker Royal Grolsch for €48.25 per share, representing an 84 per cent premium over Grolsch''s average closing share price during the past month. The offer values Grolsch''s entire issued and outstanding shares at approximately €816 million ($1.2 billion).

The British brewer has secured the backing of the Dutch brewer''s board.
In a joint communiqué, the two companies today said that they had reached conditional agreement regarding the making, by SABMiller, of fully financed, public cash offer to acquire all the outstanding shares of Grolsch.

"Grolsch will provide SABMiller with a powerful addition to its international brand portfolio," Graham Mackay, chief executive of SABMiller, said. "Within the SABMiller family Grolsch will continue to build on almost 400 years of brewing heritage, and together we will establish new positions in the most important emerging beer markets around the world. Both companies share a passion for the brewing tradition, and we are delighted to be part of this new chapter in Grolsch''s development."

Grolsch is an iconic Dutch beer brand with almost 400 years of brewing heritage and a strong position in the Netherlands. It is positioned as a true Dutch beer brewed to an original recipe, which the company says, "is now complemented by 21st century production processes and innovative packaging. In addition to Grolsch Premium Pilsner, which accounts for over 90 per cent of its portfolio, Grolsch also has a number of attractive brand variants including Grolsch Premium Weizen, Spring Bock and Autumn Bock as well as the Amsterdam brand.

SABMiller said, "Grolsch''s provenance, taste profile and existing premium positioning will play a highly complementary role in SABMiller''s international brand portfolio and better position SABMiller to expand its market share in the fastest growing segment of the global beer market."

Ab Pasman, chief executive of Grolsch, said, "In addition to financial considerations it was important for us to give a lot of attention to the interests of our employees, customers and our home region. We were doing a good job executing our independent strategy.