Anheuser-Busch has announced that it will acquire the remaining 68.8% stake of Craft Brew Alliance (CBA) that it does not own for $16.50 per share.
Headquartered in Portland, Oregon, CBA owns brands such as Kona Brewing, Appalachian Mountain Brewery, Cisco Brewers and Square Mile Cider.
The majority of CBA’s brands are already distributed through Anheuser-Busch’s network of independent wholesalers per the companies’ existing commercial agreement.
“Today’s announcement represents an exciting next step in a long and successful partnership with Anheuser-Busch, whose support for the growth of our business and brands traces back over 25 years,” said Andy Thomas, CEO of CBA.
“By combining our resources, our talented teammates, and dynamic brands, we will look to nurture the growth of CBA’s existing portfolio as we continue investing in innovation to meet the changing needs of today’s beverage consumers, all while delivering certainty of value to our shareholders.”
CBA’s portfolio will join Brewers Collective, the craft business unit of Anheuser-Busch, which also includes brands such as Platform Beer Co and Elysian Brewing Company.
AB InBev-owned Anheuser-Busch said it has invested more than $130 million in its craft partners in the last three years, allowing them to expand their production volume by an average of 31%.
“Anheuser-Busch has a long track record of working with its craft partners to help make the US beer category stronger and more vibrant,” said Michel Doukeris, CEO of Anheuser-Busch.
“Our partnership with CBA goes back many years and we look forward to supporting CBA as they continue to bring great products to beer drinkers across the US.”
Marcelo ‘Mika’ Michaelis, president, Brewers Collective, Anheuser-Busch, added: “The beer industry in the US is competitive and dynamic, with more choices available to consumers than ever before.
“CBA’s diverse portfolio of regional breweries and innovative lifestyle brands is an excellent complement to our family of craft partners and would continue to help fuel the growth of the craft beer category.”
The transaction is expected to close in 2020.
Earlier this year, CBA formed a new business unit, pH Experiment, dedicated to creating, incubating and accelerating growth in new products as well as exploring opportunities outside of beer.
As part of the unit, the company launched Low Proof Seltzer, a line of low-alcohol, low-calorie seltzers.
© FoodBev Media Ltd 2019