E-Malt.com News article: USA, IL & CA: Lagunitas Brewing Company explores selling of an equity stake

Lagunitas Brewing Company is working with Wells Fargo & Co to explore strategic options, including the sale of an equity stake, in a deal that could value the company at around $450 million, people familiar with the matter said, Reuters reported on August 4.

The Petaluma, California-based brewer is one of the best-known and fastest-growing brands in an industry in which young consumers are spurning traditional, well established beer names in favour of new, independent ones.

Lagunitas Brewing has been exploring strategic alternatives for several months, as its chief executive Tony Magee, who founded the company in 1993, seeks to expand his business.

A joint venture is also a possibility being explored, some of the people said. There is no certainty that any deal will materialize, the people added.

The sources asked not to be identified because the deliberations are confidential. Lagunitas Brewing and Wells Fargo declined to comment.

Lagunitas' Brewing’s most well known label is its India Pale Ale, a trendy bitter beer. It also makes a smoother pale wheat ale, Lil Sumpin' Sumpin'. The company has breweries in Petaluma, California and Chicago, with one more planned in Los Angeles.

The popularity of its brands, known for the large fonts on its labels, has helped Lagunitas Brewing increase its market share. In 2014, the $19.6 billion craft beer industry saw barrel volumes rise 18 percent, according to the Brewers Association. By comparison, Lagunitas Brewing saw its barrel volume rise by 50 percent in the same year.


05 August, 2015