VALBY, Denmark, Jan. 28, 2002 (PRIMEZONE) -- Baltic Beverages Holding AB (BBH), 50/50 owned by Carlsberg Breweries A/S and Oyj Hartwall Abp, has entered into an agreement with the principal shareholders of the Voronezh brewery to acquire 70% of the shares through a directed issue. The brewery has an annual capacity of 730,000 hl beer.
Baltic Beverages Holding AB (BBH), 50/50 owned by Carlsberg Breweries A/S and Oyj Hartwall Abp, has entered into an agreement with the principal shareholders of the Voronezh brewery to acquire 70% of the shares through a directed issue.
The Voronezh brewery is domiciled in the town of Voronezh i southern Russia some 500 kilometers south of Moscow. The brewery has an annual capacity of 730,000 hl beer and is the leading brewery in the region. The acquisition further strengthens BBH's position in the densely populated regions in Russia and the acquisition will also improve the logistic structure of BBH.
A modernization of the brewery will start immediately upon the local antitrust authorities' approval of the acquisition. The first phase of the modernization program, which includes a technical modernization of the brewery, is estimated to cost USD 17 million. With this acquisition, BBH's share of the beer market will increase to approx. 32%.
With the acquisition of Voronezh, BBH has a total of fourteen breweries, of which four are located in the Baltic countries, eight in Russia and two in Ukraine. BBH has also a stake in five malt houses. In 2000, BBH's net sales amounted to USD 508 million and operating profit was USD 118 million. The total production of the BBH breweries was 1,829 million liters. BBH employs over 10,000 people.