Molson Coors acquires Mount Shivalik Breweries

Molson Coors Brewing Company is a North American Brewing Company, formed in 2005 by the merger of Molson of Canada, and Coors of United States. It is world’s seventh largest brewer by volume. The company is headquartered in Denver, Colorado and in Montreal, Quebec. Recently, the company announced the acquisition of Mohali based Mount Shivalik Breweries for an undisclosed amount.

The acquisition gives it sweeping control of two breweries, apart from adding strong beer brand Thunderbolt to its portfolio. Molson Coors has acquired entire brand portfolio, and will assume direct control over brewing operations in Haryana and Punjab, giving it an additional capacity of 600,000 hectoliters. Molson Coors sells beer brands such as Iceberg 9000 King Cobra and Royal Brew in India.

Molson Coors has spent close to Rs 700 Crore since its entry into India in June 2011, in acquiring existing domestic beer brands such as Thunderbolt and launching brands such as Carling from its international portfolio. Since India is largely a strong beer market, Thunderbolt has a strong recall in some markets in North. Demand for such brands is strong in outskirts of urban areas and tier-II markets.

The latest acquisition will give a boost to the American Brewer distribution in Punjab, Haryana, Jharkhand, West Bengal, and Uttar Pradesh, where Mount Shivalik has built a steady distribution network since its establishment in 1972. Molson Coors entered India by purchasing a controlling stake of Cobra India, creating the joint venture Molson Coors Cobra India. Molson Coors Cobra currently maintains one brewery in Bihar.  

Valeant to buy Salix

Valeant Pharmaceuticals International, Inc. is a publicly traded pharmaceutical company based in Montreal, Canada. The company focuses on neurology, dermatology, and infectious disease with several drugs in late stage clinical trials and several currently on the market. Salix Pharmaceuticals Inc. is a specialist American Pharmaceutical Company. It develops drugs and medical devices that prevent and treat various gastrointestinal disorders.

In a most recent deal, Valeant announced a $14.6 Billion cash deal to acquire Salix. While, Valeant has completed roughly 40 acquisitions since 2008, giving it a diversified portfolio of some 1,500 drugs in every conceivable branch of medicine. In spite of Valeant more than doubling its share count over the last five years to help fund its acquisitions, it has a truckload of debt. The company trimmed a total of $1 Billion from its previous $16.3 Billion debt load.

The company said the deal had an enterprise value of $14.5 Billion, which would include Salix’s debt and any cash on hand. Valeant will pay $158.00 a share, valuing all cash transaction at about $10.1 Billion. The merger is expected to yield more than $500 Million in annual cost savings within six months.

The deal is the largest ever for Valeant, which lost a takeover contest for Allergan Inc. last year. Valeant also released its fourth quarter results with the announcement, posting net income of $534.1 Million, or $1.56 per diluted share, compared to $125.0 Million in the year earlier period, or 36 cents per diluted share. Revenue rose to $2.28 Billion, up from $2.06 Billion in the fourth quarter of 2013. 

American Burger Chain Carl Jr to enter India

Carl Jr is an American Based Fast food restaurant chain, operates in Western and Southwestern states. As of 2013, it started expanding in Canada, Dominican Republic, Brazil, Rico, Malaysia, Denmark, New Zealand, Singapore, Russia, Vietnam, Thailand, UK, and China. Carl Karcher is the founder of this chain and started operation in 1941. It is in the top ten fast food chains in the United States after Subway, McDonald’s, KFC, Burger King, Wendy, Taco Bell, Popeyes, and Church Chicken.

In April 2015, Indians will have choice to taste charbroiled burgers by Carl Jr. This brand has been endorsed by the like of Paris Hilton, Kim Kardashian, and Padma Lakshmi. The American fast food chain has already signed a franchise agreement with city based Cybiz BrightStar Restaurants Pvt Ltd, owned by CybizCorp. Over the next five years, there would be at least 100 Carl Jr outlets in India. The chain targets to open about 1,000 outlets across India over 10-15 years.

Carl Jr joins the race with the world’s largest burger chain Burger King, which had formed a joint venture with private equity fund Everstone Capital last year to develop its presence in India and plans to open the first outlet in India on 9 November 2014. The chain would spend $25 Million in the first five years in developing a presence in India. CKE Restaurant Holdings, the parent company of Carl Jr had already invested $1.5 Million in India in Consumer Research, product development and tasting trials during the past three years.

In a recent report, it is noted that Indian Food service market will soar to $92 Billion by 2020 from $48 Billion. Of this, the $3 Billion chained restaurant segment is expected to see the fastest growth rate of 15 percent, with the size pegged to touch $8 Billion by 2020.