ProBrewer.com

An Online Resource Serving The Beer Industry

  • News & Articles
    • Featured – Brewing Education
    • Beverage Industry News
    • Front of House
    • Operations
    • Packaging
    • Production
    • Real Estate
    • Sponsored
  • Events
    • All Events
    • Essential Virtual Resources for the Brewing Industry
    • Virtual Brewing Conference Guide
  • Classified Ads
    • Latest Ads
    • Ads By Category
    • Help Wanted / For Hire
    • Search Ads
    • Post Classified Ad
    • Post Catalog Ad
    • About Classified Ads
  • Jobs
  • Discussion
  • Tools
    • IBU Calculator
    • Beer Specifications
    • Water Chemistry
  • Advertise
    • Advertise & Sponsorship on ProBrewer
    • ProBrewer Advertisers
  • Allied Trade Directory
    • Search Allied Trade Directory
    • Your Companies
    • Submit New Allied Trade Company
  • Login / Register
    • ProBrewer Login
    • Register
    • Password Reset
» Beverage Industry News » Pabst on block?

Pabst on block?

Beverage Industry News» Beverage Industry Newsposted Nov 5th, 2003 12:00:00AM by Pat Hagerman

The New York Post reports that Pabst Brewing, the fourth-largest beer marketer in the country, is on the sales block. Its story says that Pabst, long associated with Milwaukee but now based in Texas, has hired Merrill Lynch to run an auction for a possible sale of the business.

A Pabst spokeman didn’t returns calls for comment on the report that the investment bank has already begun sending out an offering memorandum to potential buyers.

Pabst no longer brews its own beer, contracting out production to Miller Brewing Co. However, the company retains ownership of the Pabst Blue Ribbon brand and 28 others, and it markets their products. The Pabst Blue Ribbon brand has been enjoyed recent attention for its popularity with urban hipsters, and sales have climbed after 25 years of decline.

As well as PBR, Pabst brands include Old Milwaukee, Old Style, Lone Star, Schlitz, McSorley’s, Olympia, Stroh’s and Colt 45.

The company has roughly $575 million in sales and generates about $60 million in operating cash flow, according to sources familiar with the financials. It also carries $150 million of debt as well as about $150 million of pension and retirement obligations.

The auction is said to target both beer companies as well as leveraged buyout firms. However, sources familiar with the process say there is likely to be limited interest from corporate bidders, who may not be interested in the declining brands.

“The beer industry is already pretty consolidated, but most industry observers think there’s still another wave of consolidation to come,” said one potential bidder. “No one wants to be stuck with non-strategic assets because [they] could get in the way of another big [asset] auction.”

Instead, Pabst may be a better fit for LBO firms, which often pick up companies with brand names that they can exploit and businesses they can grow. “Ultimately, the goal is to create momentum around these heritage, niche brands and one day take Pabst public,” one source said.

Share this:

  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • Pocket
  • Email
Pat Hagerman

Posted by Pat Hagerman

Pat Hagerman is co-founder of ProBrewer.com. When he's not leading operations for ProBrewer you can find Pat working on Internet of Things (IoT) infrastructure and systems. If you're having a beer with him ask about some of the more original skills he's taught Alexa.

Search

Subscribe to ProBrewer Daily

ProBrewer Subscriptions

View previous newsletters.

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

 

 

 

Join the ProBrewer mailing list

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy and Cookie Policy

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

Go Somewhere Else

News • Classifieds • Help Wanted / For Hire • Discussion • Library • Contact • Advertise • Contact Details • Help

Copyright © 2021 · RealBeer Media · Privacy Policy · Terms and Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.