Updating Molson Coors Canada Inc.

Article Excerpt

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $134 and TPX.B $133; Conservative Growth Payer Portfolio, Consumer sector; Shares outstanding: 214.8 million; Market cap: $28.7 billion; Price-to-sales ratio: 6.3; Divd. yield: 1.7%; Dividend Sustainability Rating: Above Average; www.molsoncoors.com) has completed its acquisition of the remaining 58% of MillerCoors. It now owns 100% of this business. MillerCoors was formed in 2008, when Molson and SABMiller combined their U.S. brewing operations. SABMiller recently merged with rival Anheuser-Busch In- Bev to form the world’s largest brewer. To satisfy competition regulators, SABMiller agreed to sell its 58% stake in MillerCoors to Molson for $12.0 billion (all amounts except share prices and market cap in U.S. dollars). Gaining full control of MillerCoors will boost Molson’s annual revenue, from $3.6 billion in 2015 to $8.3 billion for 2016. Combining Molson’s purchasing and distribution operations with MillerCoors should also save $200 million a year by the end of the fourth year. Moreover, the purchase will give Molson $250 million in annual…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.