CANADA: Brick Brewing shelves any for-sale plans
Brick Brewing Co has ruled out a sale of the company, following a strategic review of the business.
Earlier this year, the Canadian brewer said that it was reviewing "strategic alternatives available to the company to enhance shareholder value". Among the options being considered are a sale, a recapitalisation review or "some form of business combination", the brewer said.
However, yesterday (31 October) Brick said it had completed the review of its strategic alternatives and the board of directors had determined that the company's current strategy reflected the best means to enhancing shareholder value.
This strategy included "seeking profitable growth and driving cost efficiencies", a statement said.
"In arriving at its determination the board considered that Brick Brewing has attained numerous strategic goals over the past several years, which have created a strong base for future growth," the company said.
"These strategic accomplishments position Brick well for the future," said Jim Brickman, Executive Chairman and Founder. "Despite the near term realities of increased Ontario production taxes, the longer term prospects lead us to believe that we can successfully realize our future growth opportunities and achieve improved profitability. With the strategic review process behind us, we can now more fully concentrate, with renewed vigor, on the efficiencies offered by our expanded facilities and focus on a new streamlined operation which recognizes the current realities of the marketplace."
The board also announced the resignation of Brick's president and CEO Doug Berchtold, to be effective 2 November 2007. Berchtold is also resigning as a director of the company.
"On behalf of the Company and the entire Brick Board, I would like to thank Doug for his significant contributions to Brick Brewing over the last three years," said Jim Brickman.
A sub-committee of the board has been formed to evaluate potential internal and external candidates for a replacement.
In the meantime, Jim Brickman, executive chairman/founder, has been appointed interim president and CEO, to oversee day to day operations of the company.
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