Anheuser-Busch InBev to Buy Out Craft-Brewing Company
November 11 2019 - 6:53PM
Dow Jones News
By Kimberly Chin
Anheuser-Busch InBev SA has agreed to buy out the remaining
shares of Craft Brew Alliance Inc. that it doesn't own, placing the
value of the Portland, Ore.-based company at roughly $321
million.
With the proposed merger, the Budweiser, Stella Artois and
Beck's parent will bring into the fold such brands as Kona Brewing
Co., Omission Brewing Co., Redhook Brewery and Cisco Brewers.
The Netherlands-based beer company, which owns 31.2% of Craft
Brew, said it would buy the company's remaining shares at $16.50
apiece in cash.
Shares of Craft Brew more than doubled in after-hours trading
Monday to $16.24. Shares closed at $7.33 a share on Monday, down
nearly 49% so far this year.
The world's biggest brewer has seen declining sales by volume
for years in the U.S., its largest market, as Americans shirk
mainstream lagers in favor of craft beers, spirits and nonalcoholic
drinks. In response, AB InBev has tried to sell pricier beers in
developed markets and is pushing deeper into emerging markets by
introducing new affordable brews.
Craft Brew, which was formed in 2008 by a merger of Redhook
Brewery and Widmer Brothers Brewing, operates breweries and pubs
across the U.S. and several countries around the world. Most of
Craft Brew's brands are already distributed through
Anheuser-Busch's network of independent wholesalers, the companies
said.
The deal is expected to close in fiscal 2020.
Craft Brew is expected to report fiscal third-quarter financial
results on Tuesday.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
November 11, 2019 18:38 ET (23:38 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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