KKR, Affinity complete Oriental Brewery exit

The transaction represents the largest-ever trade sale exit in Asia by private equity investors in dollar terms, according to AVCJ Research. Sources close to the deal have said that the exit represents a 5x money multiple for the brewer's PE owners.

AB InBev had sold the company to KKR and Affinity in July, 2009 in a $1.8 billion deal. The sale - which included an option for AB InBev to buy back the business on predetermined financial terms within five years - had been part of the multinational beer company's efforts to ease the debt burden created by InBev's purchase of Anheuser-Busch a year earlier.

Each PE firm put in $400 million in equity.

During KKR and Affinity's ownership period, the company emerged as South Korea's largest brewer, dominating the market alongside smaller rival Hite Jinro.

Growth has primarily been driven by the Cass brand, but Oriental Brewery is also known for OB Golden Lager and Cafri. In addition, it is the exclusive distributor of select AB InBev brands in the country such as Budweiser, Corona and Hoegaarden.

Oriental Brewery's 2013 EBITDA is estimated to be approximately KRW529 billion ($500 million).

According to a release, AB InBev drew on existing liquidity to fund the acquisition. Once the Korean brewery has been fully re-integrated into AB InBev, the company plans to leverage its global platform to export OB's brands more widely.

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• Topics
• Consumer
• Buyouts
• Exits
• North Asia
• KKR
• Affinity Equity Partners
• Consumer
• Exit
• South Korea