KPS Capital Partners has signed an agreement to sell its portfolio company, North American Breweries Holdings, to Cervecerίa Costa Rica, a subsidiary of Florida Ice and Farm Company, for $388 million in cash.
North American Breweries Holdings (NAB) is one of the largest independently owned beer companies in the United States and the owner of a portfolio of brands including Labatt, Genesee, Seagram’s Escapes, Magic Hat, Pyramid, the Original Honey Brown Lager, Dundee and MacTarnahan’s. NAB operates four breweries and seven retail locations located in New York, Vermont, California, Oregon and Washington. NAB is headquartered in Rochester, NY (www.nabreweries.com).
KPS formed NAB in February 2009 as a platform for investments and growth in the North American beer and malt beverage industries. At that time, KPS also announced NAB’s first three acquisitions: Labatt USA from a subsidiary of Anheuser-Busch InBev; substantially all of the assets of High Falls Brewing Company (now known as the Genesee Brewing Company); and a perpetual license for the Seagram’s Escapes and Seagram’s Smooth brands from Pernod Ricard USA. In 2010, NAB acquired Independent Brewers United, one of the largest craft brewers in the United States, and owner of the Magic Hat, Pyramid and MacTarnahan’s brand families of craft beer.
“In forming NAB, KPS did not buy or invest in a company; rather we created a new company that became one of the largest and fastest growing independent beer companies in the U.S. NAB is a complete validation of the KPS investment strategy of seeing value where others do not, buying right, making businesses better and creating value for our investors. We take immense pride in what NAB has accomplished,” said Raquel Palmer, a Partner of KPS. “We congratulate and thank the NAB management team for their extraordinary tactical execution of our vision, which resulted in the Company’s significant revenue growth year after year and the eventual acquisition by a leading international strategic buyer.”
UBS Securities acted as financial advisor to KPS and NAB with respect to the transaction. Jenner & Block served as legal counsel to NAB and Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to KPS.
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.5 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. KPS portfolio companies, as of September 30, 2012, have aggregate annual revenues of approximately $7.2 billion, operate 89 manufacturing plants in 25 countries, and employ over 30,000 associates, directly and through joint ventures worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-30-12