Efes Breweries International (EBI) announced on Wednesday that it had signed an agreement to buy 92.34% of Russian brewery Krasny Vostok in a deal putting Krasny Vostok's enterprise value at about $390 million.
EBI had been looking for an acquisition in order to cut it costs in a country that stretches 11 time zones. A statement by Efes said that the deal was subject to regulatory approval. "[The acquisition] will enable us to solidify and build on our fourth position within the dynamically consolidating [Russian] market through increased capacity, extensive geographical coverage, lower cost base and higher sales volume," said EBI CEO Ahmet Boyacolu.
Krasny Vostok has a 3%t share of the Russian market by volume, its annual brewing capacity is 10 million hectoliters and it operates two breweries -- one in Kazan, in central Russia, and one in Novosibirsk, in Siberia.