Dutch brewer Heineken is to buy 425 pubs from British pub operator, Globe Tenanted Pub Company (GTP).
A contractual arrangement will see Heineken paying EBP Pub Company (EBP), a new company controlled by FEOH Investments, £180m (US$294.6m, 199.2m euro) to finance the purchase of the pubs from Globe.
Other key terms of the arrangement with EBP would see a share purchase agreement with FEOH (which is advised by R20,
the investment vehicle of Robert Tchenguiz) where Heineken is expected to acquire full ownership of EBP in the third quarter of 2010, plus the supply by Heineken of beer and corporate and management services to the pubs through S&N Pub Enterprises.
The proceeds of the sale to EBP will be used mainly to repay the senior Class A1 Notes, which partially funded GTP. Heineken owns 92.8 percent of the Class A1 Notes with a face value of £175m (US$286.5, 193.7m euro), as well as 31.6 per cent of the Class B1 Notes, worth £18m (US$29.8m, 20m euro).
In 2008, Heineken operated 125 breweries in more than 70 countries and sold 162m hectolitres of beer. It's Europe's largest brewer and the world's third largest by volume, with brands including Amstel, Birra Moretti, Cruzcampo, Foster's, Maes, Murphy's, Newcastle Brown Ale, Ochota, Primus, Sagres, Star, Strongbow, Tiger and Zywiec.
