Lion's proposed takeover of Little World Beverages (LWB) is set to expand LBW's Australian beer distribution
Little World Beverages (LWB),
brewer of
Little Creatures and White Rabbit beer, is set to expand its reach in the Australian beer market
with
a
proposed takeover by Australasian beverage baron Lion.
In a statement released to the Australian Securities Exchange this morning, LWB Chairman Ian Cochrane says the acquisition presented a low-risk opportunity for LWB to establish products nationally and internationally through Lion’s network and scale distribution system.
“The past and present members of the Little Creatures team have in an extraordinarily short period of time built an iconic brand in the Australian beer market that can further expand with the expertise and greater reach of Lion,” Cochrane says.
But LWB Company Secretary Jason Markwart says, in the short term, logistics arrangements for the company will stay the same.
“It’s business as usually,” Markwart says.
“Our inbound logistics is all done through the relationships we have with existing suppliers, which we don’t expect will change in the short term. Our outbound logistics, we already use BevChain, which is a Lion and Linfox joint venture, and we’ve used them for a number of years now so we are not expecting any great changes on that front either.”
Exactly how LWB will get greater access to national and international markets Markwart says is for Lion to decide.
“That will be a matter for Lion to determine how they bring it into their distribution network,” Markwart says.
“I don’t see any great need for any changes. We are big enough now to have an efficient supply chain. “
Lion already holds 36 percent of LWB and plans to acquire the remaining 64 percent under
the proposed acquisition
sheme that will offer $5.30 a share.
“It’s very exciting times for our business,” Markwart says.
“Little creatures as a brand has grown very strongly in the last five years, but I guess this transaction gives us the opportunity to continue that strong growth and take our business to the next level.”
The scheme assumes an enterprise value for LWB of $381.6 million.
LWB directors announced intentions to vote in favour of the proposal.
Lion is a subsidiary of Japanese company Kirin Holdings, owned by Mitsubishi.
LWB is famous for its Little Creatures brewery in Fremantle, Western Australia.
A second brewery is being built in Geelong, Victoria, set to open in 2013.