Anheuser-Busch will pay Craft Brewers Alliance $20 million after the global brewer decided not to exercise its option to acquire the company. The decision was not unexpected, but CBA was “disappointed” according to a story in CPS Daily News.
Three years after A-B, which currently owns a 31.3% stake in CBA, indicated it could acquire the remaining shares by Aug. 23, 2019, the St. Louis-based brewer looked the other direction. Instead, A-B will make a one-time, $20 million incentive payment to CBA. CBA’s existing Master Distribution Agreement with A-B remains intact through 2028, and the existing Contract Brewing Agreement and International Distribution Agreement remain intact through 2026.
“While disappointing, with this decision made, management can turn its attention to refining strategic alternatives to maximize shareholder value,” CBA CEO Andy Thomas was quoted as saying in the article. “Over the past several years, we have built a sustainable infrastructure, optimized our footprint and amassed a diversified portfolio of brands to support future profitable growth anchored by robust growth in the Kona brand and the addition of our three newly acquired brands. Looking to the future, we are optimistic that our healthy balance sheet, bolstered by the $20 million payment, and strategic investments in innovation and increased brand awareness will enable us to deliver long-term shareholder value.”