Trade Resources Company News Kirin to Sell Brazil's Macacu Bebidas Plant to AmBev

Kirin to Sell Brazil's Macacu Bebidas Plant to AmBev

Tags: Kirin, AmBev

Kirin Holdings has agreed to divest one of its Brazilian production facilities to AmBev.

Brasil Kirin Holdings has signed a stock purchase agreement to sell unit Cachoeiras de Macacu Bebidas.

The company is selling a stake of 11,415,000 quotas or shares for a price of BRL486m ($149.1m).

Kirin in its statement said: “In order to optimize the size of production capacities in response to the market environment in South-eastern region with regard to the Company’s Brazil business, and to shift toward an adequate cost structure.“

The transaction is expected to be finished by the end of November or early December.

Kirin says that in terms of accounting, it will treat $145.5m from the transaction amount as special income, as a gain on sale of shares of subsidiaries and affiliates. And it will be mentioned in the consolidated financial statements for the fiscal year ending this December.

The $145.5m represents the balance after deducting book value of Cachoeiras de Macacu Bebidas net assets from the sale price.

Kirin Holdings finds its origins in 1885. Its prior name was The Japan Brewery Company. It started marketing Kirin Beer in 1888. Kirin Brewery was later established in 1907 as a separate legal entity and it purchased the assets of Japan Brewery and had expanded its business.

At present, the company sells two popular beers in Japan, which include Kirin Lager and Ichiban Shibori. The company also acts as the marketing and distribution agency for foreign brands including Budweiser and Heineken.

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