Kitchener, Ontario – Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX:BRB), Ontario’s largest Canadian-owned brewery, today announced the Company has reached a definitive agreement to sell the Formosa facility for $2.4 million. The transaction is expected to close in the current quarter. The sale represents the last step in the supply chain consolidation project that will allow Brick to realize $600k of annual recurring savings.
Mr. Zhang Haoliang, leader for the buying group, commented “The opportunity to acquire an operation with the history of Formosa was simply too attractive to pass up. The Formosa plant has a brewing history that dates back to 1870, and we look forward to growing the business to be a meaningful player in the exciting Ontario craft beer category and beyond.”
George Croft, President and Chief Executive Officer of Brick noted, “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 realize 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,” added Croft.
Brick is working closely with the buying group to ensure a seamless transition and start-up. The sale includes land, building, equipment as well as both the Red Baron and Formosa Springs brands.