Heineken Company announced On completion of the sale of the Russian division to Arnest Group, a manufacturer of perfumes, cosmetics and household products.
“The purchase price of the Heineken Russia business is 1 euro for 100% of the shares,” the company said.
The beer group estimates that the total loss from the transfer of assets, including foreign exchange losses, will be EUR 300 million. At the same time, the company excludes the possibility of returning to Russia, announced that within six months it will stop the production of beer under the Amstel brand in the country, and that “with the exception” no other international brands will be licensed on the territory of Russia. some small regional brands”.
The business buyer will be given seven Heineken factories, and the 1,800 employees working at the company will be guaranteed jobs for the next three years. In addition, the new owner will have to pay the “historical debt of Russian enterprises” to the company in installments of about 100 million euros.
The portfolio of the Dutch concern includes about 300 beer brands, including Heineken, Amstel, Krusovice and others. Among the national brands in Russia are Okhota, Zhigulevskoye and Bochkarev.
Who bought Heineken’s Russian business?
Arnest Group is registered in Nevinnomyssk, Stavropol Territory, owns a household chemicals plant. Production is also carried out at the Aerosol Novomoskovsk plant in the Tula region.
The company produces more than 53% of all aerosol products in Russia. It also manufactures Prelest hair care products, Symphony air fresheners, and Dichlorvos and Mosquitall pesticides, among other things. According to SPARK, the net profit of the group in 2022 amounted to 259.38 million rubles, and its revenue amounted to 11.17 billion rubles.
Arnest Group in September 2022 Acquired Russian assets of the American Ball Corporation, which produces aluminum packaging for drinks. The deal amounted to $530 million and the business was renamed Arnest Packaging Solutions. The company plans to complete the construction of the aluminum can factory that Ball started in the Ulyanovsk region by the end of this year.
Heineken tries to leave Russia
Dutch concern at the beginning of March 2022 announcedSuspending beer exports to Russia and investment projects in the country. A few days after this stopped Beer production in Russia under the Heineken brand.
28 March 2022 company stated Regarding the intention to transfer the Russian business to a new owner, but the expected timing of the business transfer has changed several times: first, the concern announced that it plans to conclude a deal by the end of 2022, then it is expected to sell assets in January. He promised to leave the market before the end of the first half of the year in March 2023 and February.
During this time, the company continued to operate in Russia. Representatives of the concern announced“They make every effort to find the right buyer in extremely difficult conditions.”
Heineken in March of this year allowed Russia division will launch new domestic products to avoid bankruptcy and after one month reportedfound a buyer. An application was made to the regulatory authorities of the Russian Federation for approval of the transaction, but the name of the company that planned to acquire the business at that time was not disclosed.
Due to the long asset transfer process, the company has repeatedly faced criticism abroad. Organizers of the Flow music festival in Finland on August 9 shred The company’s relationship with Heineken due to its activities in Russia.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.