KITCHENER, Ontario, Sept. 01, 2017 (GLOBE NEWSWIRE) -- 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.
About Brick Brewing
Brick is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Brick purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark and Margaritaville. In addition, Brick utilizes its leading edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders. Brick trades on the TSX under the symbol BRB. Visit us at www.brickbeer.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
Contact Information For further information: Sean Byrne, Chief Financial Officer (519) 742-2732 Ext.132 E-mail: email@example.com