Heineken Group acquires 98% share in Drinks Union a.s., the fourth largest brewery group in the Czech Republic

Drinks Union owns four breweries, all located in North and East Bohemia, with a total production capacity of 0.9 million hectolitres and employs more than 500 staff. The brand portfolio consists of the national brand Zlatopramen and the regional Breznak, Louny and Dacicky brands. Sales volumes in 2007 totalled 900,000 hectolitres, including export, primarily to Germany. That makes the group the fourth largest Czech brewer with a domestic market share of 4%.

Dutch-listed brewer Heineken (HEIN.AS), the No. 2 brewer in the world and No. 1 in Europe, grounded in 1864; the company owns over 160 breweries in more than 70 countries. Heineken produces regional, local, international and specialty beers and ciders. The company’s international beer brands include Amstel, Desperados, Sol, Affligem, Tiger, Tecate, Red Stripe and Krušovice.

The acquisition of Drinks Union helped improve the unsatisfactory market position in one of Europe’s reference beer markets. Following the deal, Heineken became the No. 3 brewer in the Czech Republic with a market share of 12%, behind SABMiller’s Plzensky Prazdroj and InBev’s Pivovary Staropramen.

A founding partner of Merger Vision initiated the transaction for the sole shareholder and led the advisory team organising the international tender process with the participation of several strategic investors from the sector.