UPDATE: AB InBev To Sell Theme Parks For Up To $2.7 Billion
October 07 2009 - 12:59PM
Dow Jones News
Belgian brewer Anheuser-Busch InBev (ABI.BT) Wednesday said it
will sell its theme parks business to private-equity firm
Blackstone Group for up to $2.7 billion.
The deal will help AB InBev pay down the $45 billion in debt it
took on to buy Anheuser Busch last year. It has been long rumored
that AB InBev wanted to sell the theme parts, which were owned by
Anheuser, but had held off because the collapse of credit markets
made private equity buyers such as Blackstone and even corporate
buyers unable to raise financing for deals.
AB InBev will receive $2.3 billion in cash and the right to
participate in the first $400 million of Blackstone's return on
investment. The subsidiary, Busch Entertainment Corporation,
operates 10 entertainment parks in the U.S., including three
SeaWorld parks.
AB InBev executives have planned to sell at least $7 billion in
assets following the Anheuser deal. The theme parks business is a
logical candidate because the company wants to focus on selling
beer.
"Busch Entertainment Corporation is a high performing asset with
a world-class management team, but not a core business for
Anheuser-Busch InBev," said AB InBev chief executive Carlos Brito
in a statment.
J.P. Morgan (JPM) and Lazard Ltd. (LAZ) advised AB InBev on the
deal.
Company Web site: www.ab-inbev.com/
-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487;
matthew.dalton@dowjones.com