Asahi to buy Independent Liquor from PEP, Unitas for $1.25b

Asahi is targeting sales of JPY2-2.5 trillion ($26-32 billion) by 2015 and wants overseas sales to account for 20-30% of the total. It plans to achieve this goal through a combination of organic growth and M&A. The company already owns Schweppes Australia, acquired in 2009, and is in the process of purchasing the water and juice business of P&N Beverages Australia as well as New Zealand soft drinks maker Charlie's Group.

In addition, Asahi plans to buy Permanis, PepsiCo's Malaysia-based bottler, for about $275 million.

Independent Liquor, which was founded in 1987 and is best-known for the Woodstock Bourbon and Vodka Cruiser brands, posted revenues of NZ$414.4 million last year but still made a loss of NZ$22.7 million. The company relies on the Australian market for 60% of its sales, with the remainder in New Zealand, but it is keen to expand into the US and China.

PEP and Unitas, each of which holds a 43.9% stake in Independent Liquor, bought the company for more than $1 billion in 2006. China's Bright Food Group was previously said to be a potential bidder for the firm.

"This is a great outcome for Independent Liquor, leaving the company well positioned to take advantage of its market leading position and growth potential," Tony Duthie, managing director of PEP, said in a statement.

UBS and law firm Clayton Utz advised PEP and Unitas. Asahi was advised by Nomura and law firm Freehills.

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• Topics
• Australasia
• North Asia
• Exits
• Consumer
• Pacific Equity Partners
• Unitas Capital