Whitbread PLC
25 May 2000
Whitbread sells its brewing business
The Board of Whitbread PLC ('Whitbread') announces that
it has today completed the sale of its brewing business,
the Whitbread Beer Company, to Interbrew SA ('Interbrew')
of Belgium for a consideration of £400 million in cash.
The Whitbread Beer Company comprises breweries at Magor,
Samlesbury and Manchester as well as drinks logistics and
cellar services operations and the Whitbread-owned drinks
brands.
The Whitbread Beer Company is the UK's third largest
brewer. Its major brands include Boddingtons as well as
Heineken and Stella Artois which are brewed under
licence. For the year to 4 March 2000, the Whitbread
Beer Company reported operating profits of £46.5 million
on a turnover of £1,116.0 million. As at 4 March 2000,
it had net assets of £298.9 million.
The employment and pension rights of the Whitbread Beer
Company's employees will be fully protected.
The terms of the sale include arrangements for Whitbread
to retain the people and the necessary production
capacity to ensure compliance with its obligations to
Heineken for the remaining period of the licence. In
addition, a further amount of up to £50 million may
become payable by Interbrew to Whitbread depending on
certain conditions relating to the future development of
the brewing business under Interbrew's ownership.
David Thomas, Whitbread's Chief Executive, said: 'This is
a critical step in the transformation of Whitbread into a
focused leisure business. I am particularly pleased that
we have concluded a deal that adds value for our
shareholders while keeping faith with our long-term
partners Interbrew and Heineken. All three companies
have discussed the sale in advance of today's
announcement and will continue to co-operate in the best
interests of our customers, brands and people. We will
be working together to ensure a smooth handover.
'I should like to thank Miles Templeman and the entire
Whitbread Beer Company team for their continued
dedication and hard work. The results can be seen in
profit and market share growth. Interbrew is acquiring a
good business and an extremely able group of people.
'Looking to the future, over 90% of Whitbread's operating
profit is expected to be generated by businesses which
will benefit from the long-term growth of the UK leisure
market.'
Hugo Powell, Chief Executive of Interbrew, commented: 'We
are very pleased with this transaction. Interbrew is the
logical buyer for Whitbread's brewing business, not only
because Whitbread already brews Stella Artois, the number
one premium lager in the UK, under licence but also
because the Whitbread Beer Company perfectly complements
our strategy of being a world brewer with a strong local
presence in our key markets. This transaction builds on
the long-standing and successful partnership between our
companies.'
Notes for editors
Interbrew, based in Belgium, is the world's fifth largest
brewer and the owner of the Stella Artois brand which has
been brewed under licence by Whitbread since 1976.
Stella is the UK's leading premium lager with annual
sales in excess of two million barrels.
The sale of the brewing operations marks the end of a 258-
year tradition for Whitbread, which was founded as a
brewery in 1742. In the last ten years the company has
focused increasingly on its leading UK leisure brands
including Marriott, Travel Inn, Brewers Fayre, Beefeater,
Hogshead, Costa and David Lloyd Leisure.
Enquiries:
Whitbread
David Reed 020 7615 1324
Harriet Brodrick 020 7615 1297
Jeremy Probert 020 7615 1445
Dresdner Kleinwort Benson
David Barclay 020 7623 8000
Nicholas Lee 020 7623 8000
Interbrew
Cornell Maes 00 32 16 31 57 69
Lehman Brothers
Adrian Fisk 020 7601 0011
Michael Mackinnon 020 7601 0011
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