South African Breweries (SAB), owner of the Ursus brand and the third-largest player on the Romanian beer market, on Tuesday announced it had acquired the largest Romanian regional beer maker - Bere Timisoreana, thus moving up to the second spot.
The deal comes after several months of analyses and negotiations. The value of the transaction was not disclosed.
The main stake was acquired from a consortium of sellers, also including the plant's managers. The current managers gained control over Bere Timisoreana, which was privatised by the MEBO method, after they bought shares from the plant's employees.
Before this latest acquisition, SAB owned three beer plants in Romania, of which Ursus Cluj was the largest, and boasted a market share of 10%. Following the purchase of the main stake in Bere Timisoreana, SAB becomes the second-largest beer maker in Romania, with a 14.5% market share.
The South-African company will thus outrank in Romania the world's second-leading beer producer, Belgian group Interbrew. Austrian group BBAG maintains its leading position in Romania, due to its Brau Union Romania subsidiary, which holds seven plants and a market share standing at 36%.
The acquisition of Bere Timisoreana follows the most spectacular transaction on this market so far, namely last year's purchase, by Brau Union, of three beer plants from Brewery Holdings. The Austrians were thus able to double their market share.
Through the beer plant based in Timisoara, SAB is in fact buying a 4.5% market share, a very good distribution network in Banat area and high consumer fidelity towards the Timisoreana brand.
"Bere Timisoreana is a profitable company, with a solid market position, benefiting from experienced management that made it on an extremely competitive market such as beer production in Romania.
The brand has three centuries of tradition behind, that is why we are certain that it is going to be one of the most popular beer brands in Romania," says Steve Woodward, SAB Romania executive manager.
Bere Timisoreana is the largest independent beer producer in the western area of the country, boasting a hefty market share in Banat.
The plant currently has a 700,000-hectolitre output capacity, while annual sales reach 580,000 hectolitres. The company managed to fend off the "invasion" of international producers mainly due to the fidelity of local consumers.
Due to its strong regional position, the company was first targeted by Heineken and Brau Union.
"Timisoreana beer provides SAB with a strong brand and excellent distribution in Romania's western area, which we will be able to develop in order to further expand at a national level," said Graham Mackay, SAB executive manager. The takeover was managed by subsidiary company South African Breweries International (Europe) BV.
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