SABMiller announced on Monday that it has entered into an agreement to acquire the Sparks and Steel Reserve brands, and related trademarks from US contract brewing partner McKenzie River Corporation, for a cash consideration of $215-million.

In addition, SABMiller and McKenzie River have agreed an ongoing new product development partnership.

Sparks is a citrus flavored premium malt beverage with added caffeine, taurine, guarana and ginseng and is the leader in the high growth caffeinated alcoholic malt beverage category.

Steel Reserve is a high gravity lager which is slow brewed for a minimum of 28 days. It is the leading brand in the US high gravity lager category and has grown at a 35 percent compound annual growth rate between 2003 and 2005 with a total of 1.6 million hecto litres sold in 2005.

Norman Adami, President and CEO of Miller Brewing Company, commented: “Sparks and Steel Reserve will have an immediate positive impact on our growth profile."

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