Meta Brewery bought by Diageo for 225 million
Jan. 08 2012
Diageo plc has completed the acquisition of Meta Abo Brewery Share Company SC ('Meta Brewery') with the purchase of the entire share capital for a consideration of USD225 million, subject to customary post completion adjustments.
Meta Brewery is the second largest beer company in Ethiopia with a volume share of approximately 15%. From its brewery near the Ethiopian capital Addis Ababa, it produces and distributes its flagship national lager brands Meta and Meta Premium. The acquisition will give Diageo direct access to the Ethiopian beer market and will complement Diageo's existing premium spirits business in the country.
Nick Blazquez, President, Diageo Africa, said:
"Gaining access to this exciting beer market is part of our strategy of participating at scale in beer and spirits in growth markets in Africa, and I am delighted that we are able to announce the completion of this acquisition. Meta is a strong national brand that has great heritage in Ethiopia. We will invest behind the sustainable growth of the brand, the business and the wider communities in Ethiopia.
"Over the past five years, Diageo has invested more than GBP 1 billion in building its businesses in Africa, and we will continue to look at opportunities to expand our footprint, grow our brands and secure strong routes to market."
Diageo currently distributes its premium spirits brands in Ethiopia through third party distributor arrangements. Its principle brands include Johnnie Walker Scotch whisky, Smirnoff vodka and White Horse Scotch whisky.
The beer market in Ethiopia is estimated to grow at more than 10% per annum to 2015, driven by strong GDP growth and increased disposable incomes (source: Access Capital, 2011).
Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine. These brands include Johnnie Walker, Crown Royal, J B, Buchanan's, Windsor and Bushmills whiskies, Smirnoff, Ciroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.
Diageo is a global company, with its products sold in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives,
Source, Wall Street Journal