E-Malt.com News article: Canada, SK & MB: Saskatchewan’s Golden Opportunities Fund Inc. confirmed as the buyer of Fort Garry Brewing Company Ltd.

Saskatchewan’s Golden Opportunities Fund Inc. has emerged as the buyer of Fort Garry Brewing Company Ltd., the oldest local brewery in Manitoba, Winnipeg Free Press reported.

The sale of Fort Garry by current owners Russell Breweries Inc. was announced a month ago, but the buyer’s identity had been kept under wraps.

The Saskatoon-based labour-sponsored venture capital fund is paying C$7.7 million for the brewer of such local beers as Fort Garry Pale Ale and Frontier Pilsner.

It’s teamed up with local Winnipeg investors, including Winnipeg lawyer David Filmon and Charlie Spiring, founder and former CEO of Wellington West Capital.

Wanda Hunchak, vice-president of Westcap Mgt. Ltd., the entity that manages Golden Opportunities, said, "We’re very excited to bring Fort Garry back to 100 per cent Manitoba ownership."

Fort Garry was originally founded in 1930, acquired by Molson in 1960 and closed in 1990 after the merger of Molson and Carling O’Keefe.

The brand was revived in the mid-’90s by the late Richard Hoeschen, great-grandson of the founder, and then acquired by Russell in 2007.

The deal to acquire Fort Garry is being done simultaneously with another transaction that will see the rest of Russell’s B.C. brewing operations acquired by another company owned by Yong Lin and Xiaomin Wang for C$1.8 million. The two deals will effectively wind down Russell.

The craft brewery industry in Canada is in a growth mode that has impacted Manitoba breweries well with the industry seeing 12 per cent growth in the past year.

Fort Garry may be the largest and oldest microbrewer in the province, but it will soon face competition from a host of startups such as Torque, Peg Beer, Barn Hammer and soon-to-open Brazen Hall Kitchen & Brewery and One Great City Brewing Co., along with Half Pints, which already has a solid niche.

The deal still requires approval from a two-thirds majority of Russell shareholders who will vote at shareholder meeting in Vancouver Nov. 28. A company management information circular issued Oct. 31 said directors and other shareholders who collectively own 40 per cent of Russell’s shares are in support of the sale to Golden Opportunities.


23 November, 2016