Constellation Brands acquires 100% of Crown Imports, AB InBev now owns Modelo

Mexico’s Group  Modelo agreed to sell its 50 percent stake in distributor Crown Imports LLC to its partner, winemaker Constellation Brands Inc. of New York, for $1.85 billion as AB InBev completes its acquisition of Modelo.  The transaction, which is subject to regulatory approval, is expected to close during the first quarter of calendar 2013.  

Crown's portfolio of brands includes Corona Extra, Corona Light, Modelo Especial, Pacifico, Negra Modelo and Victoria. Corona Extra is the best-selling imported beer and the sixth best-selling beer overall in the industry.  Corona Light is the leading imported light beer and Modelo Especial is the third largest and one of the fastest growing major imported beer brands.  

"Crown is currently experiencing significant marketplace momentum driven by new products as well as innovation in advertising, marketing, promotions and packaging," Sands added.  Under the terms of the transaction, Constellation Brands and Crown will have complete, independent control of distribution, marketing and pricing for all Modelo brands in the U.S., while AB InBev will ensure continuity of supply, quality of products and the ability to introduce innovations.  The new importation agreement will be perpetual and provides AB InBev with the right, but not the obligation, to exercise a call option every 10 years, subject to regulatory approval, at a multiple of 13 times Crown's EBIT from the Modelo brands.

ABInbev now owns 100% of Grupo Modelo
Anheuser-Busch InBev agreed Friday to buy the half of Corona maker Grupo Modelo it doesn't already own for $20.1 billion in cash, in a deal that will greatly increase the size and dominance of the world's largest brewer.

The acquisition brings under one company many of the world's best-known beer brands - Corona, Modelo and Pacifico would join AB InBev's Budweiser, Beck's and Stella Artois, among others. The combined company would have annual sales of $47 billion, and employ 150,000 workers in 24 countries.

AB InBev, based in Leuven, Belgium, said in a statement it has agreed with Modelo's management to pay $9.15 per share for the company, a 30 percent premium to the Mexican company's share price just before news of a possible deal came out June 22.


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Marcos Baer @MarcosBaer

Marcos oversees editorial and sales. He is based in Portada's NYC headquarters. Prior to launching Portada in 2003, Marcos worked in both the media and finance sectors. He occupied leading roles at the Spanish edition of The Wall Street Journal, in Spain’s newspaper Cinco Dias and at SwissRe. He is an MBA, and a CFA. Marcos is a print junkie and also loves all things digital media. He also is passionate about everything related to New York City and loves to play tennis.

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