Posted: Nov 12, 2019
Anheuser-Busch bought out Portland’s pioneering Craft Brew Alliance for $220 million Monday, three months after the macrobrewer rejected a much pricier deal.
The transaction cements Anheuser-Busch’s ownership of the Portland company that makes Widmer beer and several other well-known brews, including Kona and Redhook. Monday’s deal values the total company at $320 million.
Anheuser-Busch already owned just under a third of the Craft Brew Alliance. Under terms of a 2016 agreement, it had until this past August to buy the rest for a predetermined price of $24.50 per share – about $475 million altogether – or pay a $20 million opt-out fee.
At the time CBA’s shares were trading around $13 and Anheuser-Busch opted not to move forward. The stock faded after the St. Louis company walked away and closed Monday at just $7.33 a share.
Monday’s deal is for $16.50 a share.
The two companies remained tightly linked, since Anheuser-Busch still owned a substantial share in the Portland business. So it was no great surprise that the two companies came together on a deal Monday that gives Anheuser-Busch complete ownership of CBA, albeit at a price one-third below the August option.
“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,” Andy Thomas, CBA’s chief executive, said in a written statement announcing the deal.
By Mike Rogoway
November 11, 2019
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