Foster's Brewing International, a division of Foster's Group Limited (Foster's), today announced the acquisition of approximately 40% equity interest in the holding company of one of the Gulf region's two major alcoholic beverage sales, marketing and distribution businesses. The final purchase price is subject to confidentiality as part of the acquisition agreement but is less than US$18 million.
Through the acquisition, Foster's Brewing International will secure management control of African & Eastern Dubai and African & Eastern Oman (a+e) and will bring strong brand building expertise to the future development of the business. The equity investment will also provide further growth opportunities in the region for the broader Foster's portfolio of beer, wine and spirits.
a+e's major business interests are in Dubai, the region's tourism and business hub, where local government continues to demonstrate a commitment to ongoing regional development. a+e has a stable of leading international beer, wine and spirits brands, including Foster's, which has been distributed by the company since the brand's launch in the region 25 years ago.
The acquisition will become effective on 31 December 2002 and will be EPS positive and shareholder value accretive in year one.
Foster's Brewing International Managing Director, Richard Scully, said today: "We are delighted to have secured even greater control over Foster's growing interests in what is a dynamic region for alcoholic beverages.
"The acquisition is in line with Foster's Brewing International's core focus of developing the Foster's Lager brand globally.
"It also presents some exciting opportunities to further expand Foster's Group's Beringer Blass Wine Estates portfolio in the region, as well as introduce Continental Spirits brands."
Media:
Jo Ford
Tel: +613 9633 2511
Investor Relations:
Domenic Panaccio
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