Monthly M&A Insider - Mergermarket

Deal of the month
Target: Schweppes Holdings Pty Ltd Announced: 12 March 2009
Bidder: Asahi Breweries Ltd Deal value: $775.8m
Seller: Cadbury Plc Deal nature: Recommended
• Asahi Breweries Ltd, the Japan based beverage
manufacturer, has entered into a definitive agreement
to acquire Schweppes Holdings Pty Ltd, the Australian
beverage company, from Cadbury Plc, the UK listed
company dealing in the manufacture of beverages and
confectionery products, for $775.8m (A$1,185m).
• Schweppes Holdings owns a 100% stake in Schweppes
Australia Pty Ltd, the Australian operating business of
Cadbury, which currently employs 1,500 people at 8
manufacturing centers.
• Asahi previously announced its intention to acquire
Schweppes Holdings on 24 December 2008 in a basic
agreement, which stated the schedule of the acquisition.
According to the basic agreement, The Coca-Cola
Company (TCCC) had an agreement to negotiate a
potential acquisition of the Australian business of
Cadbury group, which was to terminate in March 2009.
As the negotiation was not initiated between Cadbury
and TCCC, Asahi proceeded with the acquisition of the
Australian business.
Australia
• The acquisition will give Asahi a foothold to expand its
business in the Asian as well as Oceanian regions. Asahi
already obtained an approval from the Australian Foreign
Investment Review Board. The deal is expected to
complete by the end of April 2009.
Conditions:
Exit multiples – Y/E 30/06/2008 Premium Analysis
• Subject to customary closing conditions
Multiples Value ($m) Offer price per share ($) -
Revenue 0.7x 1,044 1 day before -
EBITDA 7.1x 108.7 1 month before -
EBIT - - 1 day after -
Earnings - - Pre-rumor -
Advisers
Target/Seller Bidder
Financial UBS Financial Rothschild
Nomura Holdings
Legal Shearman & Sterling
Freehills
Legal Baker & McKenzie
PR Finsbury Group PR -
Monthly M&A report – 78