USA, WI: City Brewing being purchased by a consortium of investors
La Crosse's City Brewing announced on March 16 that a consortium of investors is purchasing the company, WXOW.com reported.
In a release, it said that the investors including "Charlesbank Capital Partners (“Charlesbank”), Oaktree Capital Management, LLC (“Oaktree”), Blue Ribbon Partners, LLC (“Blue Ribbon”), and City management will own 100% of City Brewing."
The deal is expected to close in April.
City Brewing operates three facilities in the country including its headquarters in La Crosse, Memphis, and Latrobe, Pennsylvania. They employ approximately 1,800 people at the facilities.
The company said it was investing $630 million to grow the company. Part of that involves operating a facility in California.
City Brewing said they were acquiring brewery operations in Irwindale, California from the Pabst Brewing Company. The facility is currently closed. When it reopens, set for late this year, City Brewery said the "Irwindale Brew Yard" would be "the largest full-service, low-alcohol beverage contract production facility in the western United States."
City Brewing would produce hard seltzers, flavored malt beverages, craft beer, and premium non-alcoholic drinks at the California facility.
Changes are coming in the management of the company. The release said that when the sale closes, current Chairman and CEO George Parke III plans to retire.
Ross Sannes, the present COO, will become the CEO. “I am excited to assume the role of CEO and continue working alongside the exceptional team at City. Strategically located on the West Coast, Irwindale Brew Yard perfectly rounds out our national footprint. This investment will allow us to enhance our brewing, processing and production capabilities, positioning us for future growth while enabling us to better serve our valued customers. We are an essential component of our customers’ supply chains and we do not take that for granted. Thanks to George’s leadership and unrelenting commitment to the City business over the last 20 years, as well as the hard work from the talented City team, I am confident that City is poised to grow along with our customer partners and capitalize on the current trends in the alcoholic beverage marketplace.”
Ryan Nelson, who has worked for City Brewing since 2001, gets promoted to Executive Vice President.
The new Chairman of the Board is Hans Savonije. The release said he has more than 30 years of industry experience internationally. He was most recently the CEO of Royal Unibrew in Denmark. “I am honored to be joining City at such an exciting time in the Company’s history and to support Ross and the leadership team through the next phase of City’s growth. George and the City team have done a remarkable job navigating the powerful secular trends in the U.S. beverage landscape.”
Investor Blue Ribbon Partners, run by Eugene Kashper, owns Pabst Brewing Company and has a financial interest in City Brewing. In November 2019, it was announced that Pabst was moving its production to City Brewing facilities by December 2024 in a deal that would run until 2040. MillerCoors is producing Pabst's output until the transition is complete.
15 March, 2021
