The Work

August 4, 2011 3:53 PM

Brazilian Firms Lead on Kirin's $2.6 Billion Brewery Deal

Posted by Hannah D'Apice

Tokyo brewer Kirin Holdings Co. plans to acquire a controlling stake in Brazilian beer and soft drink maker Schincariol Group in a bid to expand its presence in that country's fast-growing economy.

The Japanese beer maker announced Tuesday that it has agreed to pay about $2.6 billion for a holding company owned by brothers Adriano and Alexandre Schincariol that commands a 50.45 percent stake in Schincariol and that the brothers have agreed to sell.

"Through this share purchase, Kirin will obtain a solid operational platform in Brazil, the biggest economy in Latin America," according to the a Kirin statement. Brazil's beer and soft drink markets are each valued at about $38 billion.

Brazilian firms are providing legal counsel on both sides of the transaction.

Kirin turned to TozziniFreire Avogados, based in São Paulo, with Japan practice group partners Pedro Seraphim and Marcio Baptista advising. Kirin has been a firm client since 2009, and the Japan practice group has assisted the company in other matters related to Brazil operations, a firm spokesperson said. Masaki Ueno acted as in-house counsel.

On the other side of the deal, the Schincariol brothers turned to a team from Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados, also based in São Paulo. Lead partners on the case were João Ricardo de Azevedo Ribeiro and Roberto Quiroga.

There was no in-house counsel on the sellers' side, according to a TozziniFreire spokesperson.

The transaction includes a performance clause calling for Kirin to pay up to an additional $63.5 million depending on Schincariol’s performance at the end of 2011, the Japanese brewer said.

Kirin has been on something of a buying spree in recent years, taking stakes in Singapore's Fraser & Neave and San Miguel Brewery of the Philippines. Kirin acquired Australia's second-largest brewer, Lion Nathan, in 2009, Reuters reported.

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