United Breweries Ltd, the country's largest brewing company, is acquiring the brewery assets of Pacific Spirits Pvt Ltd for Rs 105 crore ($17.8 million), as per a stock market disclosure. The deal is subject to the necessary approvals.
This will be the first significant expansion move by a firm under the Vijay Mallya Group, which has been laden with debt and forced to sell assets and divest stake in group companies.
Holland’s Heineken, the world’s third largest brewer, is the single largest shareholder of United Breweries. UB Group owns around 36 per cent stake, partly held by United Spirits, which is now jointly controlled with Diageo.
The latest deal would involve acquisitions of assets viz land, building, plant / equipment of Pacific Spirits having its brewery located at Shahjahanpur at Alwar, Rajasthan.
Incorporated in 2006, New-Delhi-based Pacific Spirits manufactures alcoholic and non-alcoholic beverages. The firm has its manufacturing plant in Rajasthan which was commissioned with a total capacity to produce about 1 million HL per annum, with present capacity of 0.25 million HL per annum.
United Breweries sells its products under the brand name Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Blue, Kingfisher Red, Zingaro, UB Export, Kalyani Black Label Strong etc.
The company ended FY14 with revenues of Rs 4,229.6 crore with net profit of Rs 226 crore.