Pabst Blue Ribbon, an American original and a popular beer among the hipster crowd, has been sold to Oasis Beverages, a Russian brewer and beverage distributor for a price of approximately $700 million.
Also included in the deal are other Pabst- owned brands such as Old Milwaukee, Colt 45, St. Ides Malt Liquor, and Olympia among others. American equity firm TSG Consumer Partners is helping Oasis seal the transaction and, when all is said and done, will possess a small stake in the business.
Oasis Beverage chairman Eugene Kashper is excited to own a piece of brewing Americana:
“Pabst Blue Ribbon is the quintessential American brand – it represents individualism, egalitarianism and freedom of expression – all the things that make this country great,” said Kashper. “The opportunity to work with the company’s treasure trove of iconic brands, some of which I started my career selling, is a dream come true. It will be an honor to work with Pabst’s dedicated employees and partner distributors as we continue to build the business.”
Pabst Brewing has changed ownership hands countless times. Most recently, the company was acquired by Dean Metropoulos in 2010 for a price tag of about $250 million. Some may recognize this man’s name, as he is also the person who purchased Hostess Brands, saving the snack food maker from possible oblivion.
The sale of Pabst Brewing for $700 represents a profit of about $450 million or 180% on the original investment. This isn’t bad at all, especially when you consider that Pabst Blue Ribbon and its product lineup represent mass produced, non- craft beer, a style that has been struggling in recent years.
Oasis Beverage and TSG Consumer Partners should have the deal completed by the end of the month.
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