United States: Labatt USA desired by a private equity firm and a beer importer

Private equity firm KPS Capital Partners is among the final bidders for Anheuser-Busch InBev's Labatt USA unit, The Wall Street Journal reported on February, 8, citing people familiar with the matter.

InBev reached a deal with U.S. antitrust regulators last year to sell the Labatt USA business and associated licenses in order to close its takeover of Anheuser Busch.

A deal for Labatt USA, which imports Labatt Blue and other brands from Canada and also owns the Rolling Rock brand, could be worth around $100 million, according to the Journal. The newspaper reported that C2 Imports LLC, a beer importer run by a former Anheuser Busch executive, is also bidding.

According to people familiar with the matter, New York-based KPS Capital Partners is also in the final stages of closing a deal to acquire High Falls Brewing Co., the closely held maker of the Genesee and Dundee beer brands.

KPS reportedly hopes to combine High Falls and Labatt USA, both based in upstate New York, and explore other transactions in the industry, which is undergoing rapid consolidation.

High Falls declined to comment on the matter. KPS and InBev could not be immediately reached for comment.

11 February, 2009