Don’t look for much fizz in the auction of Brick Brewing Co.
The maker of Laker and a handful of other brands launched a “strategic review” Monday, with CIBC World Markets shopping the company. After this week’s 10-per-cent spike in the share price, Brick is worth $44-million.
Beer industry sources and bankers say if a bid does come, it will be from a private equity fund. Rival brewers just aren’t interested.
Brick has just 4-per-cent market share, and no high-end brands. Sources close to Molson Coors Brewing say the company would want premium beers to round out its product portfolio.
Labatt Brewing Co. is fully engaged in integrating discount brewer Lakeport, which attracted a buyer because it had a better-defined niche than Brick. Japan’s Sapporo faces the same challenges after taking out Sleeman last year.
The more likely takeover target among the few remaining publicly-owned brewers is Calgary’s Big Rock Brewery Income Trust, which is seen as the owner of solid regional brands.
