Subscriber login Close [x]
remember me
You are not logged in.

C&C snaps up Tennent's

Published:  01 September, 2009

Irish company C&C has announced that it is on the verge of completing a £180 million deal with Anheuser-Busch InBev (ABI) that will see it acquire its Tennent's brands.

The company's share value jumped by more than 15% with the news. The acquisition will also give it distribution rights to Stella Artois and Becks in the Irish Republic.

C&C has already entered into a conditional agreement that will be financed by itself and banks.

Directors have calculated that the acquisition will generate an immediate return on invested capital.

The deal is subject to shareholder approval

Tennent's Lager is Scotland's leading lager brand where it accounts for 55% of volumes of lager sold to the Scottish on-trade and around 30% of the Scottish off-trade. In Northern Ireland, Tennent's brands have approximately 25% of the on-trade draught lager market.

Tony O'Brien, chairman of C&C said: "This acquisition is an evolution of our stated strategy and clearly enhances the Group's position in the Long Alcoholic Drinks sector. Tennent's is a renowned Scottish brand, which, combined with our leading market position in cider, represents an attractive growth opportunity for the group. The acquisition will, we believe, create operating synergies and increase shareholder value.

"Our management team has a strong track record of successfully managing internationally branded beverages. The board unanimously recommends that shareholders approve this acquisition," O'Brien said.