The rumors that have been buzzing around the craft beer industry about the pending acquisition of Magic Hat Brewing Company and its parent company have officially been confirmed. Today, KPS Capital Partners, LP announced that its portfolio company North American Breweries, Inc. (NAB) has acquired Independent Brewers United, Inc. (IBU) through an indirect, wholly owned subsidiary. IBU produces, markets and sells the complete line of the Pyramid, Magic Hat and MacTarnahan’s brand families of beer.
The acquisition is the fourth by NAB since its formation in February of 2009. The first was Labatt USA, followed by High Falls Brewing Company, LLC (brewer of the Genesee, Honey Brown and Dundee family of beers), and Seagram’s Escapes and Seagram’s Smooth brands.
“Our strategy at NAB is to grow organically as well as through strategic acquisition. We have reviewed numerous potential acquisition opportunities over the past year, and IBU was clearly the best strategic fit for NAB. For the past six years the craft segment has been the fastest-growing beer category in the United States. We believe IBU’s craft brands, especially Pyramid and Magic Hat, with their authenticity and heritage, are highly complementary to NAB’s current product portfolio. In addition, IBU’s significant West Coast presence through Pyramid and MacTarnahan’s greatly expands NAB’s footprint, while Magic Hat solidifies NAB’s strong presence in the Northeast.” — Raquel Palmer, Partner at KPS.
“NAB has experienced tremendous success with our existing brands over the past year, and we are extremely excited about adding Magic Hat, Pyramid and MacTarnahan’s to our family of beers. We have extraordinary respect for the great heritage of these breweries and for the high quality beer they have brought to their consumers over many years. We are impressed with the growth IBU has achieved to date, and our plan is to continue to grow these brands while maintaining a commitment to their heritage and superior quality. NAB now has leading brands in every segment of the beer and malt beverage market, four significant breweries strategically located on the East and West Coasts and an energized and committed workforce. As always, we are grateful to our consumers, distributors, suppliers and employees for their contribution to our success.” — Richard Lozyniak, Chief Executive Officer of NAB
Financial terms of the transaction were not disclosed.