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Nov. 11, 2019, 5:04 p.m. EST

Anheuser-Busch plans to buy out Craft Brew Alliance for large premium

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By Jeremy C. Owens

Anheuser-Busch InBev SA /zigman2/quotes/209225053/composite BUD +0.14% will continue the buying frenzy for craft beers by attempting to purchase the rest of publicly traded Craft Brew Alliance Inc. /zigman2/quotes/209915231/composite BREW +0.37% for $16.50 a share. Craft Brew Alliance closed Monday's trading session at $7.33 a share, but the stock shot up more than 120% in after-hours trading to more closely resemble to purchase price. Craft Brew Alliance is known for its Kona Brewing, Widmer Brothers and Redhook Brewery brands, among others. Anheuser-Busch, the maker of Budweiser and other mass-market beers, has moved heavily into craft beers in recent years, and previously made a distribution deal with Craft Brew Alliance. Part of that deal included an option to buy the remaining shares, but Anheuser-Busch allowed the deadline for that deal to pass without exercising the original option, instead paying a $20 million incentive payment. The large beer company already owned a stake of more than 31% in Craft Brew, according to FactSet, and will seek to buy the rest of the shares with cash.

Read the full story:
Budweiser maker buys Kona Brewing and more craft beers for a discount

/zigman2/quotes/209225053/composite
US : U.S.: NYSE
$ 73.60
+0.10 +0.14%
Volume: 861,823
Feb. 19, 2020 4:10p
P/E Ratio
19.81
Dividend Yield
2.02%
Market Cap
$120.05 billion
Rev. per Employee
$316,102
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/zigman2/quotes/209915231/composite
US : U.S.: Nasdaq
$ 16.21
+0.06 +0.37%
Volume: 99,587
Feb. 19, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$314.86 million
Rev. per Employee
$310,054
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