Barbados-based beverage conglomerate Banks Holdings Limited (BHL) has been sold as part of a US$186 million deal involving its subsidiaries and affiliated Caribbean companies.
On August 1, BHL chairman Luis Alvarez and country manager Shafia London announced in published notices by the group and its subsidiary Barbados Dairy Industries Limited (Pine Hill Dairy) that Coca-Cola entity KOSCAB Holdings Ltd “acquired majority ownership of SLU Beverages Ltd” on July 31.
Recalling that conclusion of the deal followed a January 20 agreement to purchase, they noted that SLU Beverages Ltd, which is part of the global beverage company Anheuser-Busch InBev SA/NV group, is a majority shareholder of BHL and St Vincent Brewery Limited (SVBL), among other companies.
Alvarez and London said the sale “means that BHL, Barbados Dairy Industries Limited, Banks (Barbados) Breweries Limited and Banks Distribution Limited have officially joined the KOSCAB Holdings Ltd family and will come under the direction and management of KOSCAB”.
News of the purchase was communicated to company employees in a message from KOSCAB Holdings chief executive officer Carlos Diaz.
He said the acquisition of SLU Beverages from Anheuser-Busch InBev SA/NV, which he noted was more familiarly known as “AmBev”, meant that KOSCAB Holdings now held majority ownership in BHL, SVBL “and several other affiliated entities, including Delivery & Handling Services Ltd Barbados”.
AmBev shared information on the sale of BHL and the other companies in an August 1 filing with the United States Securities and Exchange Commission (SEC).
Share purchase agreement
“The company’s subsidiary, Cervecería Nacional Dominicana (CND), and KOSCAB entered into a share purchase agreement through which CND committed to transfer all shares it holds in SLU to KOSCAB, in exchange for the minimum estimated amount of US$186 million . . . deferred in up to five tranches until 2028,” AmBev noted the US SEC.
CND transferred its 61.83 per cent of SLU to KOSCAB Holdings on July 31 having received the first two tranches of the payment.
In his message to employees, Diaz explained the acquisition “marks the commencement of a significant new phase for our business,
characterised by an updated vision, enhanced strategic focus, and innovative approaches to our operations, all while ensuring seamless continuity for both our customers and employees.
“KOSCAB is dedicated to promoting local and regional commercial initiatives designed to foster the growth and success of the region’s premier beverage brands, including Pine Hill, Banks, Hairoun, Wadadli, Kubuli and all products affiliated with Coca-Cola,” he said.
“With the new agreement, our companies will be working together to provide a broader and more diverse range of products to better meet evolving needs. Through KOSCAB, we hope to bring enhanced investment in advanced distribution, enabling faster, more efficient delivery and improved service quality.”
Diaz added: “We would like to assure you that, as we integrate the shared vision for our companies, both organisations will continue to operate independently within their existing networks in the short term.”
In a separate announcement on the acquisition, Diaz stated: “Several years ago, KOSCAB Holdings initiated a strategic plan to consolidate franchise bottling operations into larger, more efficient entities, while diversifying our beverage portfolio to meet evolving consumer preferences.
“The Caribbean market offers substantial opportunities to advance this strategy. We regard BHL and SVBL as valuable additions to our family of companies and value their role in our ongoing vision to become a comprehensive beverage company.”
KOSCAB said it would operate BHL and SVBL as independent entities, “while adopting best practices in operations, product innovation, and service delivery throughout its network”.
London has been appointed general manager, with responsibility for overseeing the management and daily operations of BHL and SVBL under the new ownership.
“We welcome this transaction and the sustained investment in our production facilities,” she said.
“By continuing to strengthen our production capabilities and commercial operations, we expect to deliver enhanced services to our customers, foster market growth, and provide a robust platform for BHL and SVBL to contribute to the KOSCAB family and the socio-economic advancement of communities in Barbados and St Vincent.” (SC)
