Budweiser buying Chicago micro brewery Goose Island
Chicago-based brewery Goose Island today announced it had agreed to be acquired by AnheuserBusch, its current distribution partner, in a move designed to bring additional capital into Goose Island's operations.
Goose Island's legal name is Fulton Street Brewery LLC (FSB). Anheuser-Busch reached an agreement to purchase the majority (58 percent) equity stake in FSB from its founders and investors, held in Goose Holdings Inc. (GHI), for $22.5 million.
Craft Brewers Alliance Inc. (CBA), an independent, publicly traded brewer based in Portland, Ore., that operates Widmer Brothers, Redhook and Kona breweries, owns the remaining 42 percent of FSB and reached an agreement in principle to sell its stake in FSB to Anheuser-Busch for $16.3 million in cash. AnheuserBusch holds a minority stake (32.25 percent) in CBA.
Goose Island sold approximately 127,000 barrels of Honkers Ale, 312 Urban Wheat Ale, Matilda and other brands in 2010. To help meet immediate demand, an additional $1.3 million will be invested to increase Goose Island's Chicago Fulton Street brewery's production as early as this summer.
“Demand for our beers has grown beyond our capacity to serve our wholesale partners, retailers, and beer lovers,” said Goose Island founder and president John Hall, who will continue as Goose Island chief executive officer.
"This agreement helps us achieve our goals with an ideal partner who helped fuel our growth, appreciates our products and supports their success,” Hall said.
Hall will continue to be responsible for Goose Island beer production and the expansion of Goose Island's Chicago brewery, where production will continue and its business will still be based.
Anheuser-Busch's purchase of FSB is subject to customary closing conditions, including obtaining required regulatory approvals. The transaction is expected to close in the second quarter of 2011.
The two Goose Island brew pubs are not part of the deal, but will continue in operation, offering consumers an opportunity to sample Goose Island's award-winning specialty beers and food selections.