Apollo-Led Consortium Acquires Minority Stake in Budweiser Brewer's US Container Plants

By Kimberly Chin

An investor consortium led by private-equity firm Apollo Global Management Inc. has acquired a 49.9% interest in Anheuser-Busch InBev NV's metal container plants in the U.S. for roughly $3 billion.

The deal will help the Budweiser brewer get the best value from the business for shareholders and the proceeds will go toward paying down its debt, the companies said Wednesday.

AB InBev's debt has ballooned following its 2016, $100-billion-plus deal to buy SABMiller, the world's second-largest brewer at the time.

AB InBev will retain operational control of the U.S.-based metal container plants, where it produces such items as cans and kegs. The company will have a long-term supply agreement with the investor group that will ensure it continues to have a supply of metal containers in place throughout their relationship.

Under the deal's terms, AB InBev will be able to reacquire the minority stake in five years following the deal's closing, the company said.

The transaction wasn't linked to a metal can shortage that has plagued some of its rivals due to the rise of beer sales from homebound drinkers due to the pandemic, an AB InBev spokeswoman said.

"This isn't directly Covid-related," the spokeswoman said, adding the transaction ensures the company will be able to meet its metal needs.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

December 23, 2020 19:13 ET (00:13 GMT)

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