Royal Unibrew buys Latvian brewery Livu Alus

The Danish brewer Royal Unibrew AS bought Latvia's third-largest brewery Livu Alus for 130 mln dkr.

 The acquisition, which is subject to approval by relevant
authorities, is expected to be finalised at the beginning of the fourth quarter
2007.
Royal Unibrew said the acquisition will have a minor
negative effect on its pretax profit in 2007 and 2008 due to market expenses
and integration costs, while a positive earnings contribution and key ratios in
line with group targets are seen after 2008.
The group said it expects synergies from cooperation between
Livu Alus and its existing activities in the Baltic countries, which are
identified as a focus area in its 'Mach II' strategic plan.
Livu Alus has around 125 employees and posted 2006 net sales
of 67 mln dkr.