Asahi to buy Independent Liquor for $1.3b – report

The Japanese company was said last week to the be the leading bidder for the New Zealand beverage company.

Independent Liquor, whose brands include Woodstock Bourbon and Vodka Cruiser, generated NZ$414.4 million ($347 million) in revenue last year, but posted a net 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 acquired the business in 2006 for more than $1 billion. China's Bright Food Group was said to be considering a move for Independent Liquor while Asahi's Japanese rival Suntory Holdings participated in the first round of bidding.

Japanese beverage companies - supported by low capital costs and a strong yen - are aggressively seeking to expand into foreign markets in response to sluggish sales domestically.

Asahi wants to boost group revenues to JPY2-2.5 trillion ($25-32 billion) by 2015, with overseas sales accounting for 20-30% of total sales. It has earmarked $10 billion for M&A up to the 2015 fiscal year.

In July, Asahi agreed to buy Malaysian soft drinks company Permanis for $273 million. It also signed two soft drinks M&A deals with P&N Beverages Australia and New Zealand's Charlie's Group worth a total of $309 million.

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