A few weeks back Reuters released a report that KPS Capital Partners, LP had to sell its holding in North American Breweries (valued around $400 million and American’s largest owned brewer), which purchased Independent Brewers United Inc, makers of Magic Hat and Pyramid in 2010, and makers of Genesee and Labatt beers in the US, which KPS formed in 2009 when it bought Labatt brands from Anheuser-Busch InBev. NAB is distributed in Canada by Brick Brewing Company which highlights the same Magic Hat craft, which is brewed in Vermont, has been a quirky and mysterious brand currently selling the 10th largest craft brand in the US and 3rd largest in the Northeast USA.
The brewing giant (Anheuser-Busch) needed to sell the business in order to receive Justice Department clearance for InBev’s $52 billion takeover of U.S. rival Anheuser-Busch. AB Inbev still sells Labatt beer outside of the U.S.
On September 13th, a source working on the banking arm of the deal (UBS) disclosed (to PaulRevere@CalibratedConfidence.com) the bid from Florida Ice and Farm Co. (aka FIFCo, ticker FIFCOCA), as the front-runner. Considering the stake that Labatt has in the Upstate Western New York region, FIFCO stands to position itself well in the US along its claim to Heineken
Headquartered in Rochester, New York, North American Breweries, Inc. is a national platform for investments and growth in the beer and malt beverage industries. Formed in 2009, North American Breweries is one of the largest independently owned beer companies in the United States. NAB manufactures, imports, markets and sells its branded product portfolio through an independent network of wholesalers throughout the U.S. NAB’s portfolio of brands includes: the Labatt brands; the Genesee brands; the Original Honey Brown Lager and Dundee Ales & Lagers; Seagram’s Escapes; Magic Hat; Pyramid; and MacTarnahan’s. NAB also performs contract brewing of beer and other alcoholic and non-alcoholic beverages on behalf of other companies. Additionally, NAB is the U.S. distributor of Imperial from Costa Rica. NAB operates four breweries across the United States, including its flagship brewery, the Genesee Brewery, in Rochester, NY, which is one of the largest and longest continually-operating breweries in the United States.
The purchase of NAB through FIFCo will enable the Costa Rican firm to expand its reaches even further. For anyone who has visited Upstate Western New York, you’ll know these people have nothing to live for outside of a pathetic football team and ream of blue collar works who start drinking locally crafted beers just before lunch time in the steel fabrication shops. From my various connects that have come, gone, and stayed at NAB I have been informed of the strong hold this firm has in the region regarding logistics, strategic partnerships, and a keen understand of how to market to the diverse students at the University of Buffalo, Canisus College, Niagara University, local community schools, along with elder workers, sports fans, and local pubs/bars.
Florida Ice and Farm Company has been on a rampage as of late buying up nearly everything they can:
- The juice and nectar company Kern’s for $86 million.
- HI Cuveé S. A. and Vinum Aura S. A.
- FIFCo has also bought food companies such as Ducal (makers of pastas, tomato sauces and some dark colored beans).
- Musamnni’s bakeries.
Feel free to trade FIFCo on the Costa Rican exchange. I know the instant this is posted, some HFT ripping program will scour this article and position itself, so you better join for the ride. Bear in mind, the 890 Costa Rica Colón (CRC) price tag on the shares is equal to roughly 1.78 USD with just over 0.15 USD in earnings (which were reported at 76 CRC). Leave any insight, thoughts, comment below.