Apollo-Led Consortium to Acquire 49.9 Percent Interest in Anheuser-Busch InBev’s US-Based Metal Container Plants

Rhea-AI Summary

Apollo Global Management (NYSE: APO) announced a strategic partnership with Anheuser-Busch InBev (NYSE: BUD) to acquire a 49.9% stake in AB InBev’s US metal container plants for about $3 billion. This deal will help AB InBev enhance shareholder value and reduce debt. Apollo aims to leverage its investment expertise to aid AB InBev in optimizing its assets. AB InBev will maintain operational control and has the option to reacquire the stake after five years. This transaction reflects Apollo's capacity to undertake large, complex investments.

Positive

• Acquisition of a 49.9% stake in high-quality US metal container plants.
• Transaction value of approximately $3 billion indicates strong investment potential.
• Enables AB InBev to optimize operations and enhance shareholder value.
• Apollo's expertise can unlock further value amid market complexities.

Negative

• None.

Transaction Showcases Apollo’s High Quality Investment and Corporate Solutions Platform

NEW YORK, Dec. 23, 2020 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO ) today announced that accounts and entities advised by Apollo and its subsidiaries (collectively “Apollo”) and a group of institutional investors have entered into a strategic relationship with Anheuser-Busch InBev SA/NV (Euronext: ABI) (NYSE: BUD) (MEXBOL: ANB) (JSE: ANH) (“AB InBev”) to acquire a 49.9% stake in Anheuser-Busch InBev’s US-based metal container plants for approximately 3 billion USD. This transaction, once completed, will allow AB InBev to create additional shareholder value by optimizing its business at an attractive price and generate proceeds to repay debt, in line with its deleveraging commitments.

For Apollo, the transaction presents a unique opportunity to invest in high-quality assets with long-term, stable cashflows alongside the world’s leading brewer, AB InBev. Apollo is leveraging its expertise across its integrated investment platform to help AB InBev optimize its assets and unlock shareholder value amid a complex market environment.

AB InBev will retain operational control of its US-based metal container plants and flexibility in its ability to serve its customers and consumers. A long-term supply agreement will provide for AB InBev’s metal container supply needs over the course of the relationship. In addition, AB InBev will have the right, but not the obligation, to reacquire the minority stake beginning on the fifth anniversary of the close of the transaction, at pre-determined financial terms.

“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,” said Robert V. Seminara, Senior Partner and Head of Europe at Apollo. “We are pleased to invest alongside AB InBev in its leading US metal container business, supporting AB InBev’s strategic plans and its employees.”

Jamshid Ehsani, Senior Partner of Apollo 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.”

About Apollo
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had assets under management of approximately $433 billion as of September 30, 2020 in credit, private equity and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.

About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). Our Dream is to bring people together for a better world. Beer, the original social network, has been bringing people together for thousands of years. We are committed to building great brands that stand the test of time and to brewing the best beers using the finest natural ingredients. Our diverse portfolio of well over 500 beer brands includes global brands Budweiser^®, Corona^® and Stella Artois^®; multi-country brands Beck’s^®, Hoegaarden^®, Leffe^® and Michelob Ultra^®; and local champions such as Aguila^®, Antarctica®, Bud Light®, Brahma^®, Cass^®, Castle^®, Castle Lite^®, Cristal^®, Harbin^®, Jupiler^®, Modelo Especial^®, Quilmes^®, Victoria^®, Sedrin^®, and Skol^®. Our brewing heritage dates back more than 600 years, spanning continents and generations. From our European roots at the Den Hoorn brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa during the Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately 170,000 employees based in nearly 50 countries worldwide. For 2019, AB InBev’s reported revenue was 52.3 billion USD (excluding JVs and associates).

Apollo Contact Information:

For investors please contact:
Peter Mintzberg
Head of Investor Relations
Apollo Global Management, Inc.
+1 212 822 0528
APOInvestorRelations@apollo.com

For media inquiries please contact:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
+1 212 822 0491
Communications@apollo.com

ANHEUSER-BUSCH INBEV CONTACTS
Investors                                                
Lauren Abbott                                                
+1 212 573 9287                                        
lauren.abbott@ab-inbev.com                        

Maria Glukhova                                                 
+32 16 276 888
maria.glukhova@ab-inbev.com                         

Jency John                                                
+1 646 746 9673                                        
jency.john@ab-inbev.com

Media
Ingvild Van Lysebetten
+32 16 276 608
ingvild.vanlysebetten@ab-inbev.com

Fallon Buckelew
+1 310 592 6319
fallon.buckelew@ab-inbev.com

FAQ

What is the acquisition deal between Apollo and Anheuser-Busch InBev about?

Apollo Global Management is acquiring a 49.9% stake in Anheuser-Busch InBev’s US metal container plants for approximately $3 billion.

How will the acquisition impact Apollo's stock (APO)?

The acquisition is expected to leverage Apollo’s investment expertise, potentially enhancing future revenue and market position.

What are the strategic benefits of this transaction for AB InBev?

AB InBev can optimize its operations, enhance shareholder value, and generate proceeds to repay debt through this strategic partnership.

When can AB InBev reacquire the stake in the metal container plants?

AB InBev has the right to reacquire the minority stake beginning on the fifth anniversary of the transaction's closure.

What is the financial implication of this $3 billion investment?

This significant investment demonstrates Apollo's confidence in high-quality assets and its commitment to generating long-term stable cash flows.