Brick Brewing agrees to sell Formosa Brewery
Canadian beer maker Brick Brewing has entered a definitive agreement to sell its Formosa facility to an undisclosed buyer.
As per the terms of the deal, Brick has agreed to sell its land, buildings, equipment, and brands Red Baron and Formosa Springs for C$2.4m ($1.9m).
The sale is reported to be in line with Brick's strategy as it will allow them to save C$600k ($483k) annually.
The transaction is expected to close during Q3 2017, and Brick will be working closely with the buying group to ensure a seamless transition and start-up.
Brick president and chief executive officer George Croft said: “This is a tremendous outcome for all stakeholders. For Brick and our shareholders, we’re able to deploy sale proceeds towards our single source Kitchener facility.
“The buyer intends to continue to operate the brewery in Formosa, investing for the future and providing ongoing employment for the local community, which is very good news.”
“In 2014, we completed the sale of our Waterloo facility, which took the company from three operating facilities to two.
“With the sale of Formosa, we now realise the optimum long term operating model of a highly efficient, single-source facility. This positions us well to both serve our customers and to compete effectively in the future.”
Established in 1984, Brick offers an extensive array of contract manufacturing services in beer, coolers and ciders.