US: Pyramid Breweries, Magic Hat prepare for merger
Pyramid Breweries and Magic Hat Brewing Company & Performing Arts Center are looking to merge their operations.
The two US craft brewers said today (29 April) that they have signed a letter of intent ahead of the proposed merger, expected to complete by the end of August.
Magic Hat will acquire Pyramid, through an agreed all-cash tender offer and subsequent merger, at US$2.75 per share of Pyramid common stock. The tender offer, if consummated, will be followed by a merger of Magic Hat's acquisition entity with and into Pyramid, the companies said.
"The combination of these two well established, high profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate," said Pyramid's CEO, Scott Barnum. "There will be a number of important benefits for Pyramid to be part of a private company versus continuing to operate as a stand alone public entity.
"This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry's competitive dynamics continue to intensify."
Martin Kelly, CEO of Magic Hat, added: "We have a great deal of respect for Pyramid's brand heritage, award-winning beers and its dedicated employees, and look forward to consummating this transaction, which provides both strategic and financial benefits both to Pyramid's and Magic Hat's stakeholders."
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Independent Brewers United has extended the deadline for its tender offer to acquire Pyramid Breweries by 48 hours....
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