US co-manufacturer City Brewing Company has been acquired by a group of its lenders.
The financial terms of the transaction were not disclosed.
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In a statement, City Brewing said the transaction “meaningfully strengthens” its financial position by “significantly reducing” its debt, “enhancing liquidity” and supporting the Wisconsin group “for sustainable growth and long-term operational stability”.
In 2021, City Brewing secured an undisclosed investment from Charlesbank Capital Partners. Oaktree Capital Management and Blue Ribbon Partners were also listed as the beverage co-manufacturer’s shareholders at the time.
Ross Sannes, the CEO of City Brewing, said: “With a stronger financial position and clear strategic vision, we are well-positioned to continue serving as the go-to producer in the beverage manufacturing space while pursuing sustainable growth in the years ahead.”
City Brewing offers co-packing for hard seltzers, flavoured malt beverages, beer, spirit-based RTDs and non-alcoholic drinks.
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By GlobalDataIt operates facilities in La Crosse in Wisconsin, as well as in Memphis, Tennessee; Latrobe, Pennsylvania and Irwindale, California.
Alongside the transfer of ownership, a new board of directors with “significant expertise” in the beverage and co-manufacturing industries has been appointed.
As part of the leadership change, David Taylor has stepped down as executive chairman but will assist in the transition.
Sannes will continue to lead the company alongside the newly appointed board, which has members that have worked at companies including The Coca-Cola Company, Anheuser-Busch InBev and Diageo.
The directors City Brewing has lined up include David Colo, who was the CEO of US contract distiller MGP Ingredients for almost four years up to January 2024.
