NORWAY – Danish brewing and beverage company, Royal Unibrew is bolstering its presence in the Norwegian beverage market with the acquisition of multi-beverage company, Hansa Borg Bryggerier.
Royal Unibrew already had a 25% stake in the company and is acquiring the remaining 75% holding for NOK 2.5 billion (approx. US$286.3 million).
The transaction is based on an enterprise value of NOK 3.3 billion (around US$380 million) for 100% of Hansa Borg Bryggerier with close to zero debt at the time of signing, according to a statement from Royal Unibrew.
Terms of the agreement stipulate that 10% of the payment, corresponding to NOK 231 million (DKK 171 million), will be paid in cash in connection with the closing of the deal, while the remaining 90% of the payment will be paid in Royal Unibrew shares.
Hansa Borg Bryggerier is Norway’s second-largest brewery and beverage company with four breweries and one bottling plant throughout the country.
The company has a rich portfolio of products which includes beers, ciders, soft drinks, waters, and wines.
Royal Unibrew expects the acquisition, together with Solera Beverage Group which the company purchased last year, to create a strong multi-beverage market presence in Norway.
Lars Jensen, CEO of Royal Unibrew, commented: “I am very pleased to announce that we have entered into an agreement to acquire Hansa Borg Bryggerier and we look forward to welcoming our new colleagues to Royal Unibrew.
We have been minority shareholders in Hansa Borg Bryggerier since 2002 and have for a long period of time wanted to expand our partnership for mutual interest.”
Closing of the transaction is pending approval from the Norwegian competition authority.
Last year, Royal Unibrew expanded into the energy drinks category with the acquisition of MC Energy, the owner of the Crazy Tiger brand.
In a statement, Royal Unibrew revealed that it will acquire the French energy drinks company from three entrepreneurs at an enterprise value of around DKK 610 million (approximately €82 million).
As a result of the acquisitions made during the past months, Royal Unibrew revealed that it has decided to change reporting segmentation.
According to the company, the new segmentation will take effect from 1 January 2022. New segmentation will be Northern Europe, Southern Europe and International.
Northern Europe will include Finland, Norway, Sweden, the Baltic countries, Denmark and Germany. Southern Europe will include Italy and France, whereas International will continue being the businesses outside of these key markets.
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