Heineken Acquires Stake in Israeli Tempo Beer

Heineken N.V. will acquire a 35% stake in a holding company that will be established together with the Israeli Beer/Bornstein Group. This holding company owns a majority stake of 50.8% in Beer Tempo Industries, of which the largest brewery in Israel is a part.

Through this transaction Heineken indirectly acquires a 17.8% stake in Tempo. The consideration of the transaction is EURO 17 million ($18 million). This acquisition is a first step towards a further strengthening of the ties between the two companies. In addition, it was agreed to establish a joint venture to further develop the Heineken brand in Israel within two years.

Furthermore, the parties have concluded to separate the beer activities from the Tempo company, which also produces and/or sells 1.8 million hectoliters of soft drinks, fruit juices and water annually. Subsequently Heineken will exchange its 35% stake in the holding company into a direct stake of 50% in a newly formed brewing company.

The beer market in Israel has a clear growth potential. At present the per capita consumption is approximately 15-L, with a total sold beer volume of 850,000 hectoliters. Tempo produces and markets the two most successful brands in the country: Maccabee ('blond') and Goldstar (dark lager beer); other brands are Nesher and Malt Star.

Edited by Bill Noone