Lion New Zealand (Lion NZ) has signed an agreement to acquire Panhead Custom Ales, a craft brewer. This deal will become effective from 1 July this year. Financial terms of the deal have not been disclosed.

Following the acquisition, Panhead Custom Ales will continue to operate as a standalone business unit but within the Lion family and produce beers from Upper Hutt brewery.

Mike Neilson, the founder of Panhead Custom Ales, will serve as head brewer.

" Lion’s backing will help Panhead grow to a point where anyone, anywhere in the country will be able to experience our beer."

Neilson said: "The chance to have Panhead’s future supercharged by a merger with the big boys was too good to pass up.

"Lion’s backing will help Panhead grow to a point where anyone, anywhere in the country will be able to experience our beer."

Lion New Zealand’s managing director Rory Glass says: "Panhead is a phenomenally successful brewery, with a fantastic range of award-winning beers, and some big growth aspirations. We have no interest in changing its winning formula.

"Lion’s investment in Panhead will free Mike and the Panhead team to do what they do best: brew great beer."

Josh Drake will work as the general manager and be responsible for day-to-day operations of the brewery site.

Panhead Custom Ales produces beers under the brands of Supercharger APA, Port Road Pilsener, Quickchange XPA and Blacktop Oats Stout.

Lion NZ produces several beers, including Speight’s, Steinlager, Mac’s, Emerson’s, Stella Artois, and Corona.