08 May 2008
SABMiller plc (“SABMiller”) announces that it has agreed to acquire a 99.84% interest in the Ukrainian brewer CJSC Sarmat (“Sarmat”). The transaction is subject to approval by the Ukrainian competition authorities and other customary pre-closing conditions.
Sarmat is one of the largest brewers in the Ukraine and, on completion, will operate one brewery in Donetsk in the east of the country with an annual production capacity of 2.9 million hectolitres, producing the Sarmat, Dnipro and Drive Max brands. The purchase price is not being disclosed, however the value of the gross assets to be acquired is approximately US$130 million.
This acquisition represents SABMiller’s entry into one of the fastest growing beer markets globally with a four year growth rate to 2006 of 14% p.a. The Ukraine’s medium term forecast for beer market growth is expected to be higher than any other major Central and Eastern European (“CEE”) market.
Alan Clark, Managing Director of SABMiller Europe, said: “We are delighted to announce the acquisition of Sarmat and our entry into the fast growing and attractive Ukrainian market. The Ukrainian beer market has recorded exceptional expansion in recent years, driven by strong economic growth, but it still remains behind other CEE countries in terms of per capita beer consumption.”
Sarmat is owned by System Capital Management Ltd a diversified holding company that manages a number of interests in the Ukrainian market.
