ABI and Modelo: Why Now?

July 2, 2012Dear Client: One of the most recurring questions about ABI's $20.1 billion all-cash deal to purchase Grupo Modelo has been: Why now? It appears there are a couple of reasons that the stars aligned: 1. ABI's balance sheet was ready. ABI had paid down its debt more quickly than anticipated from the A-B acquisition in 2008 and debt financing rates and availability have improved of late. 2. Modelo's choices were drying up. After Modelo's ill-fated run at buying