Apollo-led consortium to buy stake in AB InBev’s US metal container plants for $3bn

Apollo Global Management is leading a group of institutional investors to acquire a stake of 49.9% stake in Belgian drinks giant Anheuser-Busch InBev‘s (AB InBev) meal container plants in the US for around $3 billion.

The global alternative investment manager is acquiring its share in the stake through certain accounts and entities advised by it and its subsidiaries.

Subject to completion, the deal will enable AB InBev to generate additional shareholder value by streamlining its business at an attractive price along with proceeds for repaying debt.

For Apollo Global Management, the deal gives scope to invest in high-quality assets that have long-term, stable cashflows alongside AB InBev.

Robert V. Seminara – Apollo Global Management Senior Partner and Head of Europe said: “Executing an institutional investment of this nature showcases Apollo’s unique ability to cut through complexity and use the strength of our platform to provide world-class companies with scaled, strategic solutions.

“We are pleased to invest alongside AB InBev in its leading US metal container business, supporting AB InBev’s strategic plans and its employees.”

Apollo Global Management-led consortium to acquire stake in AB InBev’s US metal container plants for $3bn. Photo courtesy of JiriMatejicek/Wikipedia.org

AB InBev will have operational control of its US-based metal container plants and also the flexibility in its ability to cater to its customers and consumers.

According to Apollo Global Management, a long-term supply agreement will provide for the metal container supply requirements of AB InBev over the course of the relationship.

Additionally, the Belgian drinks company will hold the right, but not the obligation, to reacquire the minority stake starting from the fifth anniversary of the close of the deal, at pre-determined financial terms.

Jamshid Ehsani – Apollo Global Management Senior Partner said: “Apollo is uniquely positioned to provide efficient custom capital solutions to large corporations.

“Our platform has an unconstrained capacity and appetite for complex and creative transactions, which, combined with our size, scale and speed of execution, differentiates us from other platforms and enables us to execute unique transactions of size that align with the investment objectives of our insurance and institutional clients, including Athene.”

The deal is expected to be wrapped up in early 2021.