US: Magic Hat makes Pyramid Breweries merger move
Independent Brewers United has made an offer to acquire all of Pyramid Breweries' outstanding common stock for US$25.7m.
The all-cash offer from the parent of Magic Hat Brewing Company for Pyramid represents a premium of 56.3% over the closing price of Pyramid's common stock on 28 April at $2.75 per share.
The transaction has received approval from the respective boards of directors of the merger parties and a newly formed subsidiary of Independent Brewers United expects to commence the tender on 2 July.
"We believe the combination makes sense for both companies and positions Independent Brewers United to be competitive in a fast changing beer industry," said Martin Kelly, president and CEO of International Brewers United and Magic Hat. "We look forward to consummating this transaction, which provides both strategic and financial benefits to our stakeholders."
Following completion, all common shares not acquired in the offer will be converted into the right to receive the offer price.
"This agreement marks yet another major milestone in Pyramid's long history and a significant development in the craft beer category in general," said Scott Barnum, Pyramid's president and CEO. "The agreement is a very positive strategic development for both companies, and we believe it is in the best interests of our shareholders."
The two US craft brewers originally announced the merge in April when they both signed a letter of intent ahead of the transaction, expected to complete by the end of August.
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