Magic Hat to acquire Pyramid
Not a scoop, by any means, but word is out that Magic Hat Brewing is buying Pyramid Breweries.
From the press release:
The closing of the proposed transaction, subject to the conditions referred to above, is anticipated to occur not later than August 31, 2008.
The board of directors of Pyramid has approved the transactions contemplated by the Letter of Intent.
“The combination of these two well established, high profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate. Additionally, there will be a number of important benefits for Pyramid to be part of a private company versus continuing to operate as a stand alone public entity. This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry’s competitive dynamics continue to intensify,” said Pyramid CEO Scott Barnum. “The Company will continue to have offices in Seattle, its historical home, and will seek opportunities to capitalize on the enhanced assets and capabilities of the new combined entity,” he added.
Martin Kelly, CEO of Magic Hat said, “We have a great deal of respect for Pyramid’s brand heritage, award-winning beers and its dedicated employees, and look forward to consummating this transaction, which provides both strategic and financial benefits both to Pyramid’s and Magic Hat’s stakeholders.”
I have had—and enjoyed—beers from both of these brewers. Pyramid is apparently having some financial difficulties and have had to let some staff go. I guess I just don’t know what to think of it. Last year was Red Hook and Widmer, and now this.
I wonder if this is the leading edge of a wave of consolidation in the craft brewing segment. We have seen such things in other business segments; remember when there were eight “big” accounting firms? The high costs of raw materials, packaging, and transportation certainly aren’t helping matters.
Best discuss it at the pub.
(via multiple sources)
Loading ...