LONDON & DENVER -- SABMiller plc and Molson Coors Brewing Co. yesterday announced the closing of the transaction to combine their U.S. and Puerto Rico operations to create MillerCoors. MillerCoors, which will begin operating as a combined entity on July 1, 2008, will be a brand-led U.S. brewer "with the scale, resources and distribution platform to succeed in the highly competitive marketplace," the companies said.
"MillerCoors will be entrepreneurial, with the ability to operate with speed and agility in the marketplace, backed by the powerful combined resources of two exceptionally [image-nocss] successful companies. We will drive profitable growth and bring new energy to the U.S. beer industry. Our focus now is to deliver on the $500 million in identified annualized cost synergies by improving sourcing across our eight major breweries, building a streamlined organization and leveraging the scale of the new company," said Leo Kiely, CEO of MillerCoors.
"As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth," said Pete Coors, chairman of MillerCoors.
Graham Mackay, CEO of London-based SABMiller, said, "Now that the transaction has closed and MillerCoors is a reality, the strong leadership team we have put in place is ready to execute and realize the tremendous potential of this great organization."
SABMiller and Molson Coors have each named five representatives to the MillerCoors board:
Pete Coors, vice chairman of Molson Coors Brewing Co. and chairman of the MillerCoors board. Graham Mackay, CEO of SABMiller plc and vice chairman of the MillerCoors board. Peter Swinburn, president and CEO of Molson Coors. Sam Walker, global chief legal officer and corporate secretary of Molson Coors. Stewart Glendinning, global CFO of Molson Coors. Dave Perkins, president of global brand and market development of Molson Coors. Malcolm Wyman, CFO of SABMiller plc. Nick Fell, Group Marketing Director of SABMiller plc Johann Nel, group human resources director of SABMiller plc. Sue Clark, corporate affairs director of SABMiller plc.Based on results for Miller and Coors reported under International Financial Reporting Standards (IFRS) for the year ended March 31, 2008, and U.S. GAAP for the four fiscal quarters ended March 30, 2008, respectively, MillerCoors' annual pro forma combined beer sales were 70.1 million U.S. barrels, which is a 1.6% increase versus the comparable pro forma period a year earlier. Pro forma net revenues were approximately $7 billion for the most recent year, a 6% increase versus a year earlier. Pro forma combined EBITDA totaled approximately $991 million, an 18% year-over-year increase. Pro forma EBIT of $743 million increased 27% from a year earlier.
SABMiller plc is one of the world's largest brewers with brewing interests or distribution agreements in more than 60 countries across six continents. The group's brands include premium international beers such as Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of market leading local brands. Outside the USA, SABMiller plc is also one of the largest bottlers of Coca-Cola products in the world. In the year ended March 31, 2008, the group reported $3.56 billion operating profit before exceptional items and revenue of $21.41 billion.
Molson Coors, Denver and Montreal, is one of the world's largest brewers. It brews, markets and sells a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors and Keystone Light in North America, Europe and Asia.
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