Royal Swinkels N.V., the second-largest Dutch brewing company, has announced the acquisition of an 92.4% stake in Global Beer Georgia (GBG), the beer and distribution arm of Georgia Capital PLC (GCAP). The deal is valued at USD 63 million. Following the transaction, GBG will be held through a new holding company domiciled in the Netherlands, with GCAP retaining a 20% holding and Royal Swinkels holding 80%.
The parties have also established a put/call structure relating to GCAP's remaining 20% holding. GCAP can exercise its put option in the years 2028, 2029, and 2030, while Royal Swinkels has the option to buy out GCAP’s remaining stake starting in 2031.
The deal is expected to be completed by December 31, 2024, pending regulatory approval from the Georgian Competition and Consumer Agency.
GBG had a reported revenue of 86 million GEL (USD 31m) and a net profit of 4.2 million (USD 1.5m) GEL last year. The company’s assets stand at 122.7 million GEL (USD 45m), with liabilities of GL113.6 million (USD 41.5m).
GBG, the third-largest brewer in Georgia, is renowned for brands such as Kazbegi, ShaviLomi, Kayaki, and ICY Since 2017, GBG has operated a fully functional brewery in Tsilkani, Mtskheta-Mtianeti region, near Tbilisi.
In addition to its local brands, the company produces and distributes international labels like Heineken, Amstel, and Krusovice under license. This arrangement is notable, given that Heineken is a primary competitor of Royal Swinkels in their shared domestic market of the Netherlands.
In Georgia, beer production is carried out by four major companies and more than 40 smaller breweries. Among the leading producers are Argo, Global Beer Georgia, Georgian Beer Company, and Lomisi. These companies not only produce local beer brands but also brew international brands under license. For instance, Lomisi holds licenses for brands from AB InBev and Molson Coors, such as Corona, Staropramen, and Löwenbräu. Global Beer Georgia produces Heineken, while Georgian Beer Company is licensed to produce Carlsberg and certain Molson Coors brands.
Royal Swinkels, a family-run brewing giant company with over 300 years of history which is better known for its main holdings Bavaria Brewery and Holland Malt has a portfolio of over 300 beer varieties and a presence in 150 countries. The company operates eight breweries and two malt houses across multiple countries, including the Netherlands (Bavaria [6m hl], De Koningshoeven [100,000 hl], Uiltje [10,000hl], De Molen), Belgium (Palm [945,000hl], Rodenbach [350,000 hl], De Hoorn [1,000hl]), Ethiopia (1.5m hl), and Cuba [1.5m hl]. Cervecería Cubana, a 60/40 joint-venture with the Cuban state company Cuba Ron SA started operation in 2023.
Peer Swinkels, CEO of Royal Swinkels, underscored the company’s enthusiasm for partnering with GCAP and praised the potential for future growth. “This acquisition brings strong brands, a modern brewery, and significant distribution capabilities. We are confident in the teams and look forward to driving continued success,” Swinkels stated.
GCAP’s Chairman and CEO, Irakli Gilauri, expressed satisfaction with the transaction, emphasizing the company’s commitment to capital-light investments and shareholder value creation. Gilauri noted, “This sale marks a successful monetization of our private businesses, providing substantial cash proceeds that strengthen our financial flexibility.” He highlighted that over the last three years, Global Beer Georgia experienced a robust revenue growth rate of 29% annually and an impressive 79% compound annual growth in EBITDA.
