Magic Hat to Acquire Pyramid
Published by admin on 4.29.2008 at 9:50 a.m.South Burlington, Vermont's Magic Hat Brewing Co. and Seattle's Pyramid Ales and Lagers announced Tuesday a letter of intent in which Magic Hat will acquire Pyramid. The transaction, expected to close in late August, will take Pyramid private; Magic Hat presented an all-cash offer of $2.75 per share. At 12:00 pm EST Tuesday, Pyramid shares were trading at $2.50.
“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 industry's 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 Pyramid's 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 Pyramid's and Magic Hat's stakeholders.