Royal Unibrew A/S’ acquisition of Vrumona in the Netherlands is finalized and full-year EBIT outlook maintained
29 September 2023 - 12:59PM
Royal Unibrew A/S’ acquisition of Vrumona in the Netherlands is
finalized and full-year EBIT outlook maintained
COMPANY ANNOUNCEMENT NO 27/2023 - SEPTEMBER 29, 2023
In continuation of Company Announcement no 20/2023 published on
July 3, 2023, we are pleased to announce that the acquisition of
Vrumona is now finalized.
Royal Unibrew A/S today announces the closing of the acquisition
of Vrumona, the second largest soft drink company in the
Netherlands, from Heineken. Vrumona is located near Utrecht and
employs more than 300 people. The company has a strong portfolio of
own brands and partner brands supporting the health and
sustainability agenda.
Lars Jensen, CEO of Royal Unibrew A/S, states: “I am happy to
welcome the dedicated and talented people from Vrumona to the Royal
Unibrew family. We are eager to onboard the strong organization and
get started on the exiting journey to establish the company as a
multi-beverage platform in Central Europe that will deliver organic
earnings growth for years to come.”
As previously announced, Royal Unibrew A/S is acquiring 100% of
Vrumona at an enterprise value of EUR 300 million on a debt free
basis. In 2022, Vrumona realized net revenue of EUR 200 million and
an EBITDA of around EUR 25 million, resulting in an acquisition
multiple (EV/EBITDA) of 12x.
The acquisition is expected to be EPS accretive in 2024, and
ROIC on the acquisition is expected to exceed WACC within three
years.
Vrumona fits very well into Royal Unibrew A/S’ operating model
of strong local businesses with strong local brands with its solid
positions in On-Trade and Off-Trade. The company has been a front
runner in creating healthy and functional beverages for years for
which reason the majority of its business is within the no/low
sugar and calories segment. With the acquisition, we establish a
new growth platform and expand our geographical footprint while we
also expand our longstanding relationship with PepsiCo as Vrumona
is operating the full beverage portfolio from PepsiCo on a license
agreement in a partnership dating back to 1949.
The Vrumona production facility in Bunnik includes seven lines
with a current annual output of around 3.1 million hectoliters. The
production facility is in a good condition; however, additional
long-term investments are needed to improve efficiency as well as
to expand capabilities and capacities. It is therefore expected
that it will take some years before the platform is able to exploit
its full organic growth potential.
Outlook for 2023 and the long-term EBIT
margin targetVrumona is expected to contribute around DKK
0.3 billion to net revenue for the remainder of the year, whereas
the earnings contribution is expected to be insignificant due to
transaction- and integration-related costs.
As a consequence, we are raising the expectations for full-year
net revenue to approximately DKK 13.3 billion (previously: around
DKK 13 billion), while maintaining full-year expectations for EBIT
in the range of DKK 1,600-1,750 million.
As set out in the Annual report for 2022, our long-term EBIT
margin target was dependent on no further large margin dilutive
acquisitions and declining input costs in the coming years.
Vrumona will be dilutive to margins in the short- to
medium-term.
We will in connection with the annual report for 2023 review our
long-term EBIT margin target as part of the normal strategy process
with the Board of Directors.
For further information on this announcement:
Investor Relations: Jonas Guldborg Hansen, tel (+45) 20 10 12
45Media Relations: Michelle Nørrelykke Hindkjær, tel (+45) 25 64 34
31
About VrumonaThe soft drinks
company from Bunnik, where around 325 people work, has been a
wholly owned subsidiary of Heineken since 1968. Today, Vrumona has
a strong position in both retail and Horeca. It is the
second-largest player in the Dutch soft drink market and a
frontrunner in healthier soft drinks with a range of established
brands such as Royal Club, Sisi, Sourcy, Vitamin Water, and
licensed brands such as 7 Up, Pepsi, and Rivella.
About Royal Unibrew A/SRoyal Unibrew is a
leading regional multi-beverage company with strong local brand
portfolios in its main markets in the Nordic region, the Baltic
countries, Italy, France and Canada. In addition, its products are
sold in more than 70 countries in the rest of the world. Royal
Unibrew wants to be THE PREFERRED CHOICE as local beverage partner
that challenge the status quo by doing better every day in a fun,
agile and sustainable way.
- Fond-RU-27-2023-uk-Vrumona-closing_FINAL
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