Molson Coors buying StarBev for $3.54 billion

Molson Coors will spend $3.54 billion to buy StarBev and its nine breweries in central and eastern Europe as it expands its operations.

The Denver brewer is betting on a vibrant region once the economic crises subsides in the European Union, where unemployment has now reached the highest point since the euro was introduced in 1999. "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," CEO Peter Swinburn said on Tuesday. StarBev had sales of about $1 billion last year, brewing more than 11 million barrels of beer.

The company, which brews Bergenbier, Ozusko and Borsodi beers, is owned by funds advised by CVC Capital Partners Ltd. and StarBev management. StarBev has 4,100 workers and brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary and Montenegro.