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Bond Acquires 91 Percent of Heileman

October 12, 1987

NEW YORK (AP) _ Australian brewer Bond Corporation Holdings Ltd. said Monday it has acquired 91 percent of G. Heileman Brewing Co. and plans to buy the remaining 9 percent of the Wisconsin-based firm.

The $1.22 billion buyout creates one of the world’s largest brewers.

Bond said its Amber Acquisition Corp. subsidiary accepted 21.8 million Heileman shares under a previously announced tender offer of $40.75 a share. The offer expired at midnight Friday.

Bond said it would offer holders who did not tender their shares the same cash price as the tender offer and expects to ″consummate its acquisition of the entire equity interest″ in the next few weeks.

Heileman’s board approved the offer after rejecting Bond’s initial $38-a- share bid.

Under terms of the agreement, Heileman will maintain its operations in Wisconsin and corporate headquarters in La Crosse. Heileman also will honor all agreements with workers, distributors and vendors.

Heileman, the nation’s fourth largest brewer with plants in several states, employs about 3,000 people in Wisconsin. The company has an 8.9 percent share of the domestic beer market, with 12 brand names that include Old Style, Lone Star and Black Label. It also has a large bakery operation.

Bond, Australia’s second largest beer producer with 45 percent of the market in that country, is a major exporter to Great Britain, Japan, Asia and the Middle East. For the year ended June 30, Bond reported operating profit of $116 million on consolidated revenues of $1.8 billion.

The company, based in Perth, is operated by industrialist Alan Bond, who is best known as the sailor who financed Australia’s successful challenge that took the America’s Cup from the United States in 1983.

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