AB InBev to buy back Oriental Brewery in deal worth $5.8B

Anheuser-Busch InBev NV (BUD) has agreed to repurchase South Korea's Oriental Brewery from KKR (KKR) and Affinity Equity Partners for $5.8B including debt.

AB InBev sold Oriental to KKR in 2009 for $1.8B in an effort to reduce debt following InBev NV's $52B acquisition of Anheuser-Busch. As part of the deal, AB InBev had the right to buy back the operations within five years.

AB InBev will finance the transaction with internal resources, but will also receive $320M in cash when the deal is completed.

The acquisition heralds further consolidation in the alcoholic-beverages industry, coming just a week after Japan's Suntory Holdings said it had agreed to buy Beam for $13.6B. (PR)

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Comments (6)
  • tomlos
    , contributor
    Comments (1301) | Send Message
    What's funny is the liberals are offended but the actual potential offending people rarely are.
    20 Jan 2014, 11:35 AM Reply Like
  • spald_fr
    , contributor
    Comments (2814) | Send Message
    Denver versus Seattle: The Battle of the Bongs


    This game will be smokin'
    20 Jan 2014, 01:33 PM Reply Like
  • positivethoughts
    , contributor
    Comments (2065) | Send Message
    My comment was deleted by the thought police. I hope seeking alpha isnt bowing to left-wing, special interests. The left, in general, doesnt support private investment and stock ownership. Seeking Alpha obviously does. The two arent a match made in heaven.
    23 Jan 2014, 01:25 PM Reply Like
  • Darren McCammon
    , contributor
    Comments (4405) | Send Message
    Nice deal by KKR. Buy it for $1.8B then sell it back to the original owner 5 years later for $5.8B. That's over a 3x gain in less than 5 years (about 26% annually) plus whatever profit they made while operating it.
    20 Jan 2014, 03:05 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13623) | Send Message
    It's nice to see KKR is still treating their partners so well. I think Goldman Sacs and KKR are competing with each other on who can fleece their clients and business partners the most. I sometimes wonder why anyone would willingly deal with them save when you are trying to IPO (then they are purely out to fleece the new shareholders and not you).
    21 Jan 2014, 01:27 AM Reply Like
  • papaone
    , contributor
    Comments (1150) | Send Message
    Moon, what did KKR do that is so upsetting you? For me, they are making money and distributing a very good return on my investment.
    23 Jan 2014, 12:11 PM Reply Like
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