Following the strategic review of selected popular brands of United Spirits Ltd, the Board of Directors of USL, on Saturday, approved the sale and franchising of selected brands to Inbrew Beverages Pvt Limited (“InBrew”). The transaction does not include the McDowell’s or Director’s Special brands, which will be retained by USL, a press statement from the company said.

USL and Inbrew have executed definitive agreements for the sale of the entire business undertaking associated with 32 brands -- including Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov -- for a total cash consideration of approximately ₹820 crore subject to customary adjustments.

The sale portfolio covers the entire business undertaking associated with the 32 brands, including related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility.

The two companies have also entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper.

USL has also granted Inbrew a right, subject to certain conditions, to convert the fixed term franchise arrangement into one with perpetual rights to use and/or a call option to acquire the brands at a pre-agreed consideration.

Certain ancillary agreements, including transitional services arrangements, in relation to the sale of the business undertaking and the franchise and option agreements have been approved to be executed between USL and Inbrew.

Hina Nagarajan, Managing Director & CEO of USL, said, “The transaction reflects the continued evolution of the management of the Popular portfolio since 2016, when the company moved to a franchise model in many States, to enable a sharpened focus on ‘Prestige & Above’. This is a significant move to reshape our portfolio in service of our publicly stated mission to deliver sustained double digit profitable top-line growth.”

Ravi Deol, Chairman of InBrew, said, “The acquisition of these iconic brands provides Inbrew with a unique platform to extend its ambition of becoming India’s trusted household beverage. After the acquisition of Molson Coors’ beer business last year, we will now participate in the mainstream spirits category, making Inbrew India’s diverse AlcoBev player.”

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