Constellation Brands, the third largest alcoholic beverage company in the United States, just added San Diego-based Ballast Point Brewing & Spirits to its list of recent acquisitions, this time picking up the company for a cool $1 billion.
With a beer portfolio that includes more than 40 different styles of beer, led by its popular Sculpin IPA and Grapefruit Sculpin IPA, Ballast Point is expected to provide Constellation with a high-growth premium platform that will enable the parent company to compete in the fast-growing craft beer segment.
"We started this business nearly 20 years ago with a vision to produce great beer that consumers love and to do it the right way," explained Jack White, Founder of Ballast Point Brewing & Spirits. "To achieve that vision, we needed to find the right partner. The team at Constellation shares our values, entrepreneurial spirit and passion for beer, and has a proven track record of helping successful premium brands reach the next level of growth and scale."
Ballast Point started in 1996 as a small group of home brewers, and will continue to operate as a stand-alone company with its existing management team and employees structure in tact. The Ballast Point team will continue to build on its successful expansion across the U.S., according to a press release, and will now have access to Constellation's strong financial position and willingness to invest in growth.
"Craft beer is a key driver of growth and premiumization within the beer industry, with craft doubling its share of the U.S. beer market in the last five years,” said Rob Sands, Chief Executive Officer, Constellation Brands. “Their business philosophy and entrepreneurial spirit perfectly align with our culture and we look forward to strengthening our position in the high-end beer segment with what is arguably the most premium major brand in the entire craft beer business."
According to Constellation, Ballast Point is on pace to sell nearly 4 million cases in calendar 2015, which would represent growth of more than 100 percent versus calendar 2014. Net sales for calendar 2015 are expected to approximate $115 million. The transaction will be financed with cash and debt, and is expected to close by the end of calendar year 2015, subject to customary closing conditions.