Owner of Labatt USA, Genesee beer seeks buyer-sources

NEW YORK, Sept 6 Thu Sep 6, 2012 9:48pm IST

Stocks

   

NEW YORK, Sept 6 (Reuters) - North American Breweries, which sells Genesee and Labatt beer in the United States, has been put up for sale by its owner, private equity firm KPS Capital Partners, according to sources familiar with the matter.

The sources did not want to be named because the process is not public.

The beer company could be worth around $400 million, one of the sources said. KPS has hired investment bank UBS to advise on the sale, according to that source.

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

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.

For example Heineken, which in June struck a deal to buy a Belgium-based cider maker, is now locked in a seven-week bidding war with Thai Beverage over Tiger Beer maker Asia Pacific Breweries.

AB InBev in June struck a $20.1 billion deal to take over Mexico's Grupo Modelo, and its Brazilian unit, AmBev, agreed in April to buy a controlling stake in the Dominican Republic's Cerveceria Nacional Dominicana (CND).

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.

KPS declined to comment. UBS did not respond to a request for a comment.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage