PBR Seeks 100 Million for a Buy-Out
Do you have an extra $100 million lying around? Well, let’s show you the way to our store…(just kidding). If you did have that $100 million, you could provide a loan to Pabst Blue Ribbon and Old Milwaukee beer brands. The Company is looking to help fund a buyout by a private-equity firm.
Pabst Blue Ribbon, founded in 1844, hired Bank of America Merrill Lynch last year to find bidders to buy the company. The private equity firm that would purchase the brewery is said to be C. Dean Metropoulos & Co. Metropoulos would obtain over 25 different beer labels with the acquisition of the brewery.
Pabst Blue Ribbon has experience explosive growth over the past year. U.S. sales of PBR jumped 33% to $172 million. This makes PBR the 20th largest beer brand in the country, according to SymphonyIRI Group. Yielding a 5.7% ABV, this beer is known for its inexpensive price tag (although at times can be described as “flavorless”).
The brewery makes several well known brands, including:
- Old Milwaukee
- Old Style
- Colt 45
- Pabst Blue Ribbon
Pabst Blue Ribbon contracts production of its beer to companies like MillerCoors. The agreement with MillerCoors expires in 2014, according to a regulatory filing.
The brewery was in the news a few months ago with the popular website www.buyabeercompany.com that was going to allow the American public to buy the company. Unfortunately, the crowdsourcing campaign was cut short (and probably wouldn’t have worked either way). They had tried to raise $300 million to buy the company and over $200 million was pledged.
We don’t know the fate of PBR, but we do know it is an American classic. We wish it the best of luck with the pending transaction.
Your Choice. Your Beer. Drink Up.
- Beer Universe