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LONDON & DENVER -- SABMiller plc and Molson Coors Brewing Co. yesterday announced the closing of the transaction that combined their respective U.S. and Puerto Rico operations, which created a new joint venture named MillerCoors.
"As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth," Pete Coors, chairman of MillerCoors, said in a statement.
MillerCoors will begin operating as a combined entity today, with the scale, resources and distribution platform to succeed in the highly competitive marketplace, the companies stated.
"Today is an historic day in the American beer business, not only for the shareholders of both SABMiller and Molson Coors, but for MillerCoors consumers, employees, distributors and business partners," Graham Mackay, chief executive of SABMiller, said in a statement. "Now that the transaction has closed and MillerCoors is a reality, the strong leadership team we have put in place is ready to execute and realize the tremendous potential of this great organization."
Leo Kiely, chief executive of MillerCoors, said in a statement: "MillerCoors will be entrepreneurial, with the ability to operate with speed and agility in the marketplace, backed by the powerful combined resources of two exceptionally successful companies. We will drive profitable growth and bring new energy to the U.S. beer industry. Our focus now is to deliver on the $500 million in identified annualized cost synergies by improving sourcing across our eight major breweries, building a streamlined organization and leveraging the scale of the new company. Our talented people are experienced and passionate about this business and -- importantly -- are determined to win."
Both companies have named five representatives to the MillerCoors board of directors. They include:
-- Pete Coors, vice chairman of Molson Coors Brewing Co. and chairman of the MillerCoors board;
-- Graham Mackay, CEO of SABMiller plc and vice chairman of the MillerCoors board;
-- Peter Swinburn, president and CEO of Molson Coors;
-- Sam Walker, global chief legal officer and corporate secretary of Molson Coors;
-- Stewart Glendinning, global CFO of Molson Coors;
-- Dave Perkins, president of global brand and market development of Molson Coors;
-- Malcolm Wyman, CFO of SABMiller plc;
-- Nick Fell, group marketing director of SABMiller plc;
-- Johann Nel, group human resources director of SABMiller plc; and,
-- Sue Clark, corporate affairs director of SABMiller plc.
The two companies also released the new venture's pro forma results, including an annual pro forma combined beer sales of 70.1 million U.S. barrels, for the four quarters ended March 31, 2008.