Coca-Cola Amatil (CCA) has provided an update on the potential acquisition of Foster’s Group assets, including the Foster’s Australian spirit and spirit RTD business, the Australian non- alcoholic beverages business and the Fiji Breweries and distillery in Fiji and Samoa.
In a statement from the company, CCA announced it has not elected to proceed with the acquisition of the Foster’s Australian spirit and spirit RTD business.
Group Managing Director, Terry Davis said, “CCA has developed an excellent manufacturing, sales and distribution platform for alcoholic beverages and a key consideration in the due diligence process has been weighing up the relative brand health and value of the existing Foster’s brands versus developing our Australian spirits and ARTD brand portfolio organically by leveraging the portfolio of global Beam brands. With a strong pipeline of new Beam products to be launched into the market over the next 12-18 months, CCA has elected not to pursue the acquisition.”
CCA had indicated that for the acquisition of all three businesses would require an outlay of $200 million. ‘As a consequence of CCA’s election not to proceed with the acquisition of the Australian spirit and spirit RTD business, it is estimated that the aggregate net outlay for the other two Foster’s businesses would likely be in a range of $50-70 million, assuming CCA elects to proceed with the acquisition of both of these businesses.’ CCA.
The decision to acquire the two businesses is expected to be made shortly by the company.