Anheuser Busch Inbev SA (ADR) (NYSE:BUD) an Acquisition Specialist

July 20, 2016

President and CIO Sean Chaitman of Shelter Rock Management says Anheuser Busch Inbev SA (ADR) (NYSE:BUD) is a common holding in all three of his firm’s strategies and is categorized as what he calls an “acquisition specialist.”

In today’s sluggish global economic environment, companies that can successfully identify and acquire other businesses tend to do well for their shareholders.

[Anheuser Busch Inbev] is the result of a series of successful acquisitions. Its management team is adept at identifying and successfully acquiring other companies. The company is the result of the merger between InBev, which makes Stella Artois and Becks, and Anheuser-Busch, which of course owns the Budweiser brands.

InBev’s management successfully acquired Budweiser in the last decade and then proceeded to acquire Grupo Modelo (OTCMKTS:GPMCF), which owns the Corona brands. Right now, it’s in the process of buying theMiller brands, which we expect to support continued rapid cash flow growth in the years ahead. Basically, their strategy is to acquire companies and streamline the combined businesses. They use the excess cash flow from their merger synergies to pay down debt, increase the dividend and acquire more businesses.