Russian brewer Oasis Beverages and TSG Consumer Partners LLC are partnering to buy Pabst Brewing Co., according to people familiar with the matter.
The deal values the maker of Pabst Blue Ribbon and other beers at somewhat less than $1 billion, one of the people said. Oasis will take a majority stake, while TSG will take a minority stake in the deal, which will be announced Thursday, the people said.
Consumer-products investor C. Dean Metropoulos & Co., Pabst's current owner, bought the company in 2010 from a charitable foundation for about $250 million. In addition to its namesake lager, Pabst Brewing owns a host of well-known American beer brands, including Schlitz, Colt 45 and Old Milwaukee. The company traces its roots to 1844.
And the Official Press Release:
Eugene Kashper announced today that Oasis Beverages has entered into a definitive agreement to acquire Pabst Brewing Company (“PBC”). Terms of the transaction were not disclosed. TSG Consumer Partners (“TSG”), a leading strategic equity investor in growth-oriented consumer brands, will acquire a minority stake in Pabst as part of the transaction.
Mr. Kashper stated, “Pabst Blue Ribbon is the quintessential American brand – it represents individualism, egalitarianism, and freedom of expression – all the things that make this country great. 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. We intend to invest meaningfully in the organization, to continue strong marketing support for PBC’s unique brands, and to drive new product innovations and renovations, such as the recent launch of Ballantine IPA.”
Mr. Kashper will serve as the CEO of PBC and the company’s headquarters will remain in Los Angeles, California.
Brian Krumrei, managing director at TSG, said “Pabst has a strong portfolio of authentic American brands including Pabst Blue Ribbon, Rainier, Lone Star, Old Style, Schlitz and National Bohemian, among others. We’re excited about the partnership with Eugene and the outlook for Pabst going forward.”
PBC is currently owned by Evan, Daren, and Dean Metropoulos, well-known investors and builders of iconic consumer brands. Mr. Metropoulos stated, “We are delighted at Mr. Kashper’s and TSG’s strong commitment to growing the unique Pabst portfolio, and we are very supportive of the new ownership group and their exciting plans for the future.”
UBS Investment Bank is serving as financial advisor to Mr. Kashper. Perella Weinberg Partners LP and Credit Suisse Securities (USA) LLC are serving as financial advisors to PBC.
About Eugene Kashper
Mr. Kashper, a graduate of Columbia University, began his career in the beer industry in 1994 with The Stroh Brewery Company. Since then, Mr. Kashper has managed brewing companies in Eastern European and CIS countries and currently serves as Chairman of Oasis Beverages, an international beer and beverage company he founded in 2008.
About TSG Consumer Partners
TSG Consumer Partners LLC is a leading investment firm with over $2.9 billion in equity capital under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, beauty, personal care, household, apparel and accessories sectors. Representative past and present partner companies include vitaminwater, Smart Balance, popchips, Muscle Milk, Smashbox Cosmetics, Pureology, e.l.f. cosmetics, Revolve and Planet Fitness.
About Pabst Brewing Company
In business since 1844, the Pabst Brewing Company is North America’s largest privately held brewing company. Pabst Brewing’s portfolio includes iconic brands with deep ties to America’s heritage such as Pabst Blue Ribbon, Lone Star, Rainier, Ballantine IPA, Schlitz, Old Style, Stroh’s and Old Milwaukee. For more information on Pabst, visit www.pabstbrewingco.com.
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