Sorry, not Latvians. Not at all. The story was co-authored by a Mr. Lattman. Misread that entirely. My fault. I blame the head cold. Nevertheless, this is an interesting tidbit in the Wall Street Journal today:
Private-equity firm KPS Capital Partners LP is angling to become a player in the U.S. beer industry. The company is in the final stages of closing a deal to acquire High Falls Brewing Co., the closely held maker of the Genesee and Dundee beer brands, according to people familiar with the matter. It also is among the final bidders for Labatt USA, an arm of the world’s largest brewer, Anheuser-Busch InBev. KPS hopes to combine High Falls and Labatt USA, both based in upstate New York, and explore other transactions in the industry, which is undergoing rapid consolidation.
A player! Does that come with a smoking jacket and a gold cigarette case? It pretty much comes with all corner store and gas station sales from Syracuse to Buffalo and half of the rest of upstate NY. Interesting that the Labatt wing of the deal would make sense as part of the badly named Anheuser-Busch InBev efforts to pay down debt. Reuters reports that Labatt USA should gain ABIB (which I pronounce “ah-BEEEEEEEEEB” in a high piercing voice) about a tidy $100 million. Sadly, the same report indicates that the Rochester-based High Falls Brewery is only worth the assumption of its debt. But it is interesting that these tough times appear to be apt for a merger and consolidation focused on continued expanding brewing in what is otherwise a region which has known tougher times for a while now.