The global brewer announced yesterday (November 11) that it will acquire the remaining shareholding in Craft Brew Alliance (CBA) for $16.50 per share, more than double the $7.33 per share price at the close last night.
AB InBev currently holds a 31.2% participation in CBA, acquired in January 2013.
In August, it rejected an offer to purchase CBA outright. The initial agreement stipulated that as of August 23, AB InBev was to either purchase CBA for US$24.50 per share, which is equivalent to approximately US$500 million, or make a payment of US$20 million. She opted for the latter solution.
Commenting on the revised purchase, Andy Thomas, CEO of CBA, said: “Anheuser-Busch has long worked with its artisan partners to help make the American beer category stronger and more dynamic.
“This announcement represents an exciting new step in a long and successful partnership with Anheuser-Busch, whose support for the growth of our business and brands goes back more than 25 years.
“By combining our resources, talented teammates and dynamic brands, we will seek to foster the growth of the CBA’s current portfolio while continuing to invest in innovation to meet the changing needs of today’s beverage consumers, while providing solid value to our shareholders.
Once the transaction, which, subject to closing conditions and regulatory approval, is expected to close in 2020, CBA will become part of the AB InBev’s Brewers Collective group, which consists of the acquired artisanal beer brands. These include Goose Island, Elysian and 10 Barrel.
Over the past three years, AB InBev has invested more than $130 million in the business unit, allowing members to increase their production by an average of 31%.
Michel Doukeris, CEO of AB InBev, said: “Our partnership with CBA goes back many years and we look forward to supporting CBA as it continues to provide excellent products to beer drinkers across the United States.
Based in Portland, Oregon and founded in 2008, ABC is a collection of brewery brands including Kona Brewing, Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co, Redhook Brewery, Square Mile Cider Co, Widmer Brothers Brewing and Wynwood Brewing Co. The beers produced by the group are available in the United States and 30 countries worldwide.