Asahi Buys Fuller’s London Pride Beer in $330 Million Deal

(Bloomberg) -- Asahi Group Holdings Ltd. agreed to buy Fuller, Smith & Turner Plc’s beer business for 250 million pounds ($330 million) to gain brands such as London Pride and expand its reach in Europe.

The Japanese company will also get cider and soft-drinks production assets as well as a wine wholesaling business, Fuller said Friday. The British company will focus on its pub and hotel operations and will form a long-term supply agreement with Asahi for beer. Fuller shares rose as much as 17 percent on its plan to return cash to shareholders.

The deal furthers Asahi’s push into Europe, after the 2016 acquisition of Pilsner Urquell and other brewers from Anheuser-Busch InBev NV for 7.3 billion euros ($8.3 billion), as the Budweiser maker tied up loose ends from its acquisition of SABMiller Plc.

Like Japanese rivals Kirin, Suntory and Sapporo, Asahi has been seeking growth internationally -- with mixed results -- as the domestic market stagnates. Since the Pilsner acquisition, Asahi has backed away from some of its investments elsewhere in Asia, agreeing in 2017 to sell most of its nearly 20 percent holding in China’s Tsingtao Brewery Co. to Fosun International Inc. for $847 million. Asahi also divested its stake in Indonesian beverage ventures.

In the deal with Fuller, Asahi is paying 23.6 times earnings before interest, taxes, depreciation and amortization for the year through last March. The U.K. company plans to return 55 million to 69 million pounds to shareholders after the sale.

Rothschild & Co. advised Fuller’s on the deal, which should be completed in the first half.

©2019 Bloomberg L.P.