Amsterdam, 14 June 2007 - Heineken N.V. announced today the
acquisition of Krusovice Brewery in the Czech Republic from
Radeberger Gruppe KG. As a result of this transaction, the market
share of Heineken in the Czech Republic will increase to 8%, with
total volumes of over 1.6 million hectolitres, improving Heineken's
position in the market to number three.
The transaction, which will be funded from existing cash resources,
is expected to be earnings enhancing in 2008 and value enhancing in
2010. The proposed acquisition will be submitted to the relevant
competition authorities and is expected to be completed by 1
September 2007. Under the terms of the transaction, the acquisition
price is not disclosed.
The Royal Brewery of Krusovice was founded in 1517, is situated
around 70 km west of Prague and employs 300 staff. The brewery has a
portfolio in the premium segment of the market, with the main
Krusovice brand, one of the oldest Czech beer brands, and five
variants, Svetle, Musketyr, Imperial, Cerne and Jubilejní. The state
of the art Krusovice Brewery is profitable. In 2006, sales volumes
were 700,000 hectolitres. Production capacity is 1 million
hectoliters with the possibility to expand. The domestic market share
is almost 3%.
Nico Nusmeier, Regional President Central and Eastern Europe of
Heineken N.V., commented: "This acquisition strengthens our base and
provides a strong opportunity to accelerate top-line growth in the
Czech market. The Krusovice brand is very popular among local
consumers and we are confident that with appropriate commercial
investment, this brand has clear potential to grow. In addition, we
plan to further extend the excellent export position of the Krusovice
brand by leveraging the reputation of Czech beers, particularly in
Central and Eastern Europe. The brewery's proximity to the city of
Prague represents potential to further grow the Heineken brand."
Heineken currently owns Starobrno Brewery in the Czech Republic, with
production facilities in Brno and Znojmo in the South Moravia region.
The brewery brews Starobrno, Hostan and Zlaty Bazant brands and
imports Heineken. The brewery has a domestic market share of more
The Czech beer market, one of Europe's reference beer markets and
profitable, has been stable for years. Annual consumption is
currently estimated at 16 million hectoliters. In 2006, Czech per
capita consumption was 159 litres per year, the highest in the world.
About Heineken N.V.
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
Group beer volume of 132 million hectolitres Heineken ranks fourth in
the world beer market by volume. 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 2006, revenues amounted to € 12 billion and net profit
(before exceptional items and amortisation of brands) amounted to €
930 million. Heineken employs over 57,500 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 HEIA NA and HEIO NA and on the Reuter Equities 2000
Service under HEIN.AS and HEIO.AS.
Additional information is available on Heineken's home page:
More information on http://www.pivo-krusovice.cz/en
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