“Long-term investors (have) a unique opportunity to purchase a high-quality consumer franchise operating in a none-cyclical industry at an attractive free cash flow yield,” says Matt Franz, writing on SeekingAlpha.com.
While MolsonCoors borrowed heavily to acquire all of MillerCoors, “substantial cash flow will allow rapid deleveraging, boosting equity value,” Franz says.
Not only that, Coors Light and Miller Lite have steadily taken market share from ABI’s brands. Coors Light has gained segment share for 8 consecutive quarters and Miller Lite has gained segment share for 10 quarters.