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Inbrew buys 32 brands from United Spirits for Rs.820-Cr

BSE Disclosure  

Publicly listed United Spirits Ltd has approved the sale of 32 brands to Delhi-based, Ravi Deol promoted Inbrew Beverages Pvt Ltd for a total cash consideration of about INR 820 crore. The sale includes brands such as Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov. The sale portfolio covers the entire business undertaking associated with the 32 brands, including related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility. The two companies have also entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper. USL has granted Inbrew a right to convert the franchise arrangement into one with perpetual rights to use a call option to acquire the brands at a pre-agreed consideration. The transaction does not include the McDowell's or Director's Special brands, which will be retained by USL. The revenue of the “Business Undertaking” or the brands being sold for FY22 was INR 5,970.20 crore, representing approximately 19% of the total consolidated revenue of USL. The Net Worth of the Business Undertaking (as at March 31, 2022) was INR 356.90 crore, representing 7% of the consolidated net worth of the seller.

From the Venture Intelligence M&A Deals Database: In 2021, Inbrew had acquired Molson Coors Brewing Co’s beer business in India including the Thunderbolt brand and the rights to other brands such as Millers, Miller High Life, Miller Ace, Blue Moon, Carling and Cobra in India.