Wednesday, November 28, 2007

Two Popular Craft Breweries Agree to Merge

Business Wire reports that Redhook and Widmer, both craft-brewing pioneers, are combining their businesses.

SEATTLE & PORTLAND, Ore.--(BUSINESS WIRE)--Two of the country’s leading and pioneering craft breweries announced today that they have agreed to combine their businesses and become one company. Redhook Ale Brewery, Incorporated of Woodinville, Wash., and Widmer Brothers Brewing Company of Portland, Ore., will merge to create a combined company called Craft Brewers Alliance.

Kurt Widmer will serve as the company’s chairman of the board and Paul Shipman will serve as chairman emeritus. Dave Mickelson, Redhook’s current president and chief operating officer, and Terry Michaelson, president of Craft Brands Alliance, Redhook and Widmer’s sales and marketing joint venture, will serve as co-CEOs of the company. The combined company will continue to be publicly traded on NASDAQ under the symbol HOOK and will have management offices in both Portland and Woodinville.

The all stock transaction will result in Widmer shareholders and existing Redhook shareholders each holding approximately 50% of the outstanding shares in the combined company. Anheuser-Busch is expected to remain a strategic distribution partner for Widmer and Redhook products and will continue to hold a minority equity stake in the company following the merger.

Read the entire article at Business Wire, and another article at Forbes.

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