Asahi rumoured leading bidder for Independent Liquor
Japanese brewers have deep pockets and they are out to shop. Final bids for Independent Liquor were due to close 4 August 2011 and if the rumour mongers are correct, neither of the big Australian retailers – Woolworths and Coles – submitted offers.
While Independent would have been a handy supplier of private label beer, spirits, soft drinks and ready-to-drink beverages for the major retailers, both are understood to have come to the conclusion that buying a full or partial stake would trigger an exodus of Independent‘s other customers, destroying millions of dollars in value in the process.
With Coles and Woolworths on the side-lines, that left the final shortlist down to Japanese brewer Asahi.
Independent Liquor is the country’s leading producer of ready-to-drink spirits mixes such as Woodstock Bourbon and Vodka Cruiser. It had NZD 414.4 million (USD 343 million) in revenue last year but recorded a loss of NZD 22.7 million (USD 18 million), it was reported. The firm is eyeing expansion into the U.S. and China.
Independent Liquor is also active in the beer and cider markets, challenging the Lion-DB duopoly in New Zealand with its rebranded Boundary Road Brewery, named after its location at Papakura, Auckland. Boundary also brews global brands Carlsberg, Tuborg and Kingfisher under license.
Pacific Equity Partners and Unitas Capital bought Independent Liquor for NZD 1.1 billion (USD 900 million) in December 2006 and have been looking for new partners to inject some equity capital into the business to reduce its debt load, estimated to be about NZD 562 million (USD 465 million).
On 8 August 2011 reports from Japan said that Asahi has won priority negotiation rights to buy Independent for about 100 billion yen (USD 1.2 billion).
The move follows a spate of deals by Asahi looking abroad for profits as it faces declining domestic consumption and a strong yen.
In July 2011 Asahi agreed to buy Permanis Sdn. Bhd., Malaysia‘s second-biggest soft-drink maker, for USD 273 million.
It also signed two soft-drink deals in Australia and New Zealand valued at a total of USD 309 million, one for a key portion of P & N Beverages Australia Pty. Ltd. and the other for New Zealand‘s Charlie‘s Group Ltd.
