Home » SABMiller, Molson Coors to combine U.S. businesses
SABMiller, Molson Coors to combine U.S. businesses
SABMiller Plc and Molson Coors Brewing Co. said they have signed a letter of intent to combine the U.S. and Puerto Rican operations of their respective subsidiaries, Miller and Coors, in a joint venture to be called MillerCoors.
The new company will have estimated annual sales of 69 million U.S. barrels and net revenue of approximately $6.6 billion. Pro forma combined profits are estimated at $842 million. The stated goal was “to compete more effectively in the increasingly competitive U.S. marketplace,” according to the joint statement.
Pete Coors, vice chairman of Molson Coors, will become chairman of MillerCoors. Graham Mackay, SABMiller CEO, will serve as vice chairman. Leo Kiely, current CEO of Molson Coors, will be the CEO of the joint venture, and Tom Long, current CEO of Miller, will be president and “chief commercial officer.”
The deal apparently does not include operations outside of the U.S. and Puerto Rico. SABMiller and Molson Coors expect the transaction to generate approximately $500 million in annual cost synergies to be delivered in full by the third full year of combined operations.
SABMiller and Molson Coors each will have a 50 percent voting interest in the joint venture and have five representatives each on its board of directors. Based on the economic value of the contributed assets, SABMiller will have a 58 percent economic interest in the joint venture and Molson Coors will have a 42 percent stake.
Read the joint statement here.
PepsiCo Stock Hits 32-Year High, but Why?
Decent first quarter but also investment firms buys a big stake.
Happy Family Bought by Groupe Danone
Dannon parent acquires 92 percent of seven-year-old toddler food company.
Anuga 2013: A Taste of Global Innovations Set to Take Place October 5-9
The huge global food show will be October 5-9 in Cologne, Germany.
Vermont Passes Genetic Labeling Bill
The Vermont House of Representatives approved H.112 on May 10. The bill will go to the senate next in fall 2013. If passed, the earliest the act could become law is January 2014.
GMO Labeling Effort Reaches Washington
Senate and House bills would require the FDA to develop regulations for the labeling of food containing bioengineered ingredients.
Burger King CEO To Take Over at Heinz
Bernardo Hees of 3G Capital is new CEO of Pittsburgh acquisition.
The New Hostess Company Resumes Operations
The Metropolous-Apollo-controlled company plans to reopen four plants and hire workers, but not union labor.
- 04/19/2013 Cheesemaker, Restaurant Chain Hold Mac and Cheese Cookoff
- 04/19/2013 Restaurant Chain That Also Supplies School Lunches Goes Trans Fat-Free
$10 Billion Offer for D.E Master Blenders 1753
Former part of Sara Lee eyed by European fund Joh. A. Benckiser.
- All news »
Access Food Processing and Wellness Foods magazines on-line and receive an e-mail each month when your new issue is ready. Subscribe Now »
Biweekly updates delivering feature articles, top industry news, company news, product announcements, technical issues and more. Subscribe Now »