Heineken sells glass company

The Dutch brewer Heineken has signed a letter of intent to sell its 100%-subsidiary Glas Moerdijk B.V. to Rexam Beverage Packaging Euro Holding B.

V (Rexam) for €43m.Heineken said it was selling the company debt free, but that approximately €40m of the sale price was earmarked to repay the debt of Glas Moerdijk.Part of the transaction will be a supply agreement. Rexam has a long-standing relationship with Heineken and supplies both cans and glass containers.

In December 2002 Heineken increased its stake in the glass plant from 33% to 100% when it purchased the shares from its German partner Hermann Heye KG. At that time Herman Heye KG was experiencing financial difficulties and as a result divested its participation in Heye Glas Nederland.

The glass plant in the Netherlands is fully dedicated to the production of green export bottles for the worldwide distribution of Heineken beer.

Heineken acquired its initial 33% stake in the bottle producer in 1996, in order to secure the supply of high quality export bottles to meet the growing demand. Heineken never had the intention to operate the plant by itself, and therefore set out to find a reliable partner to acquire the plant. The transaction will have no substantial impact on Heinekens results.

The transaction is subject to the necessary approvals.

600450 Heineken sells glass company glassonweb.com
Date: 2 February 2004
Source: Just-drinks.com

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