CVC selling StarBevto Molson Coors

Molson Coors, the US brewing giant, is to acquire StarBev, a central and east European brewer, from its private equity owner CVC in a deal worth €2.65bn (£2.2bn).

The brewer of Coors Light and Carling said the acquisition would strengthen its portfolio of premium brands and expand its presence into "growth markets around the world".

The Prague-based StarBev, which brews Staropramen lagers, was established when CVC bought the central European operations of Anheuser-Busch InBev in December 2009. Peter Swinburn, the chief executive of Molson Coors, said: "The central and eastern European beer market is attractive, with strong historical trends and upside potential as the region returns to its pre-economic-crisis growth rates."

StarBev has nine breweries, including in the Czech Republic and Serbia, and delivered underlying profits of €241m in 2011, on turnover of nearly €700m.

Molson Coors is financing the acquisition with $3bn in debt and cash, in addition to €500m of convertible debt issued to CVC.