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Tuesday, April 29, 2008

Pyramid/MacTarnahans Merging AGAIN?!

Poor, poor Portland Brewing. Has any brewery seen so many misguided mergers in its short life? Now a Vermont brewery (a decent but not great one, based on my samplings in Burlington) comes a'courtin:
SEATTLE & SOUTH BURLINGTON, Vt.--(BUSINESS WIRE)--Pyramid Breweries Inc. (NASDAQ: PMID) (Pyramid) and Magic Hat Brewing Company & Performing Arts Center, Inc. (Magic Hat) today announced the execution of a Letter of Intent (Letter of Intent), which contemplates a transaction by which Magic Hat will acquire Pyramid, through an agreed all-cash tender offer and subsequent merger, at $2.75 per share of Pyramid common stock on a fully-diluted basis....

The board of directors of Pyramid has approved the transactions contemplated by the Letter of Intent.

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. Additionally, 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 industrys competitive dynamics continue to intensify, said Pyramid CEO Scott Barnum. The Company will continue to have offices in Seattle, its historical home, and will seek opportunities to capitalize on the enhanced assets and capabilities of the new combined entity, he added.

Martin Kelly, CEO of Magic Hat said, We have a great deal of respect for Pyramids 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 Pyramids and Magic Hats stakeholders.

The domino effect began when Saxer over-extended and bought NorWester. Then Portland Brewing bought Saxer. Then Portland, faltering, was propped up by the MacTarnahans, who shifted the name to the flagship amber. Then Pyramid bought MacTarnahans. And now Magic Hat will buy Pyramid.

Fred Bowman's little brewery may not be dead an buried yet, but I fear it just went on life support.

2 comments:

ryan hirscht said...

Hey Jeff. Check out who Martin Kelly used to work for:
href="http://findarticles.com/p/articles/mi_m0EIN/is_1999_Dec_9/ai_58120663"
&
href="http://findarticles.com/p/articles/mi_m3469/is_10_55/ai_114562304/pg_1"

Dr. Wort said...

It's interesting....

Kelly used to be CEO of Pyramid and is currently the CEO of Magic Hat. Makes me wonder if there's a personal reason behind the buy out or did Kelly just know Pyramid's week spot?

Either way, according to what I read, Kelly will be stepping out after the merger... Hmmmm, interesting. Is he taking the money and running or just doesn't want to be around to face the music from past Pyramid employees or what is the story???

I think there's a lot going on here, that we don't know about... Anybody have an inside source? I'd love to hear what's really going on and why.... :-O

I don't think it's all sunshine and lollipops.... but I could be wrong...

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