By Kimberly Chin
Anheuser-Busch InBev SA has agreed to buy out the remaining shares of Craft Brew Alliance Inc. that it doesn't own, placing the value of the Portland, Ore.-based company at roughly $321 million.
With the proposed merger, the Budweiser, Stella Artois and Beck's parent will bring into the fold such brands as Kona Brewing Co., Omission Brewing Co., Redhook Brewery and Cisco Brewers.
The Belgium-based beer company, which owns 31.2% of Craft Brew, said it would buy the company's remaining shares at $16.50 apiece in cash.
Shares of Craft Brew more than doubled in after-hours trading Monday to $16.24. Shares closed at $7.33 a share on Monday, down nearly 49% so far this year.
The world's biggest brewer has seen declining sales by volume for years in the U.S., its largest market, as Americans shirk mainstream lagers in favor of craft beers, spirits and nonalcoholic drinks. In response, AB InBev has tried to sell pricier beers in developed markets and is pushing deeper into emerging markets by introducing new affordable brews.
Craft Brew, which was formed in 2008 by a merger of Redhook Brewery and Widmer Brothers Brewing, operates breweries and pubs across the U.S. and several countries around the world. Most of Craft Brew's brands are already distributed through Anheuser-Busch's network of independent wholesalers, the companies said.
The deal is expected to close in fiscal 2020.
Craft Brew is expected to report fiscal third-quarter financial results on Tuesday.
Write to Kimberly Chin at email@example.com
Corrections & Amplifications
This item was corrected on Tues., Nov 12, 2019 to clarify that Anheuser-Busch is based in Belgium, not the Netherlands.