Reuters – Cerveceria Costa Rica Buys PE-Backed North American Breweries

Cerveceria Costa Rica struck a deal to buy privately held North American Breweries, which sells Genesee and Labatt beer in the United States, for $388 million in cash. KPS Capital Partners, the private equity firm that owns North American Breweries, said in a statement on Friday that it expected the deal to close in the fourth quarter. KPS earned a return of more than 9 times invested capital on the sale, according to a source familiar with the matter. Cerveceria Costa Rica is a unit of Florida Ice and Farm Co S.A.

(Reuters) – Cerveceria Costa Rica struck a deal to buy privately held North American Breweries, which sells Genesee and Labatt beer in the United States, for $388 million in cash.

KPS Capital Partners, the private equity firm that owns North American Breweries, said in a statement on Friday that it expected the deal to close in the fourth quarter. KPS earned a return of more than 9 times invested capital on the sale, according to a source familiar with the matter.

Cerveceria Costa Rica is a unit of Florida Ice and Farm Co S.A.

NAB’s other brands include Honey Brown Lager, Magic Hat and Pyramid.

Reuters reported last month that the brewer, one of the largest independently owned beer companies in the United States, was up for sale.

KPS formed the company in February 2009 when it bought the Labatt brands in the U.S. for an undisclosed price from Anheuser-Busch InBev.

The brewing giant 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.

North American Breweries bought the privately held brewer of Genesee and Dundee brands in February 2009. It acquired Independent Brewers United Inc, which owned Magic Hat and Pyramid, in 2010.

The global brewing industry has been rife with deals as the industry leaders, such as AB InBev, SABMiller PLC and Heineken, seek to boost their exposure in emerging markets and take on smaller brands.

Craft, or small batch, beers, such as Magic Hat, have also been a bright spot in a U.S. beer market that has been in decline for three years as many drinkers have switched to wine or cocktails.

UBS advised KPS and North American breweries on the sale.

Related Posts

Leave a Reply

PEHUB Community

Join the 12502 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Create your free online surveys with SurveyMonkey , the world's leading questionnaire tool.

Look Who’s Tweeting

Psst! Got any hot tips?

  • This field is for validation purposes and should be left unchanged.

PE HUB News Briefs

RSS Feed Widget

Marketplace

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget