SABMiller, Heineken and Carlsberg study acquisition of Schin
Valor Econômico
The largest brewers in the world are in conversations with Schincariol in an attempt to acquire its control. The BTG Pactual bank had been working to prepare an initial public offering of shares of Schincariol, beer manufacturer, headquartered in Itu, interior of São Paulo. But, at the same time, the company began being approached by groups interested in the attractive Brazilian market of beverages. The South African SABMiller, the Dutch Heineken and the Danish Carlsberg are some of the names that have held conversations with the controllers of Schin, found out Valor.
What is at stake is a share of nearly 10% of the emerging market of beers in the country and the control of one of the few companies of the sector with significant size and independent operation, that is, not connected to a multinational of the area. The whole process, however, is still preliminary. The result may be both a sale to a strategic investor or an IPO. The company, in fact, has been seeking to improve its governance and formalizing its processes as a preparation to star on the stock exchange.
Adriano Schincariol and his brother, Alexandre, are the controllers of the company, with nearly 51% of its capital. Their cousins withhold the remaining 49%, however, since there is no shareholders' agreement, such branch of the family is in the minority and it would have hired the Morgan Stanley bank to handle their interests separately. One of the cousins of Adriano and Alexandre, Gilberto Schincariol Junior, holds the Vice Presidency of the company.
In the calculations of a group interested in Schincariol the company might be worth something between R$ 5 billion (US$ 2.9 billion) and R$ 7 billion (US$ 4.1 billion). But the controllers of Schin have signaled they want a much higher value, something above R$ 10 billion (US$ 5.9 billion). The calculations are based on the numbers of Ambev, which is traded on the stock exchange at a multiple of 12 to 13 times its ebitda (earnings before interest, taxes, depreciation and amortization). Last year, the ebitda of Schincariol was at R$ 434 million (US$ 246.6 million). The earnings of the brewery reached R$ 5.7 billion (US$ 3.24 billion), growth of 12% compared to 2009. The net income increased 9.5%, reaching R$ 2.9 billion (US$ 1.65 billion). The debt of the company is small, less than one time the ebitda. The company owns 12 plants in 11 States.