Ambev SA (ADR) (NYSE:ABEV) Acquisition-Expansion Spree Gathers Momentum


Dallas, Texas 07/13/2015 (Financialstrend) – Brazil’s best known brewery Ambev SA (ADR) (NYSE:ABEV) is on a bullish trend, posting steady gains and attracting more investors. The trend was further accentuated when leading analyst firm Moody’s announced ‘Positive Outlook’ for Anheuser-Busch InBev Fiance, Inc launched Notes, July 9; even as it retained other ratings for the company. Anheuser-Busch is a Belgium-based parent company of Brazilian subsidiary Companhia de Bebidas das Americas, Ambev.

Buys Colorado craft brewer in Sao Paulo

Ambev SA (ADR) (NYSE:ABEV) has caught investor interest in recent weeks with the purchase of a local, Sao Paulo state-located brewery, Colorado. The company, in its attempt to ensure higher engagement with consumers interested in premium brands, has added Colorado to its portfolio.

The local brewery has an international consumer footprint. Colorado beers are in the US as well as in France with $6 million in revenue.

The latest acquisition comes soon after the takeover of another beer crafting company, ‘Wals,’in June.  Earlier in the month of May, Ambev SA had announced the addition of a Colombia-based craft brewery to its existing company portfolio. The Colombian crafter is named Bogota Beer Company and has a strong local presence and immense potential to grow beyond its national boundaries.

Ambev SA operates as a subsidiary of the Belgium company, which is famed for its integrated-acquisitions building value strategy.

The spate of acquisitions, according to rating firm, Moody’s will help in reduction of leverage in the ‘medium term.’ The company’s ratings further bring to focus, the strong margins held by Ambev SA as well as liquidity. The rating also includes a commentary on the volatility the company is subject to, due to its Latin American and Asian market exposure. Besides, the decline in beer consumption in erstwhile market segments, Europe as well as North America too are included in their rating for Ambev SA (ADR) (NYSE:ABEV).

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