Adolph Coors Company and Molson Inc. announced a definitive agreement to combine in a merger of equals that will create a new company with the operating scale and balance sheet strength to take a leading role in the consolidating global brewing industry.
With combined beer sales of 60 million hectoliters (51 million U.S. barrels), Molson Coors Brewing Company will be the world's fifth-largest brewing company by volume, with pro-forma combined net sales of $6.0 billion, EBITDA of $1.0 billion and free cash flow of $707 million for the 12-month period ended March 31, 2004. In addition, the combination is expected to generate approximately $175 million in annualized synergies by 2007, with half of these benefits achieved within 18 months following completion of the merger. The transaction is expected to be earnings accretive to the shareholders of both companies within the first full year of combined operations.