CVC Capital Partners has entered into an agreement to acquire the Central and Eastern European operations of Anheuser-Busch InBev in a deal that values the assets at $2.23 billion. The deal included $1.618 billion of cash, $448 million in an unsecured deferred payment, and an $800 million future contingent payment. AB InBev will also retain a minority interest in the sold assets currently valued at $165 million. In a positive sign, CVC raised approximately $1 billion of debt financing in support of the transaction from a group of international and regional banks.
So far in 2009, private equity firms have acquired over 100 assets and businesses worth more than $10 billion from corporate America, according to the PitchBook Platform. This represents a significant portion of private equity's investment so far this year. Anheuser-Busch InBev has been one of the biggest corporate sellers with four business going to private equity firms, including two in the U.S. - Busch Entertainment to The Blackstone Group and Labatt USA to KPS Capital Partners. Historically, corporate divestitures are one of the primary sources of PE deal flow and will likely grow as companies refocus on cores business areas and are able to get fair prices for their non-core assets.