Constellation Brands Inc. - owners of Corona - announced Monday that it will purchase San Diego's Ballast Point Brewing & Spirits for $1 billion.
Yes, that's billion with a "B."
Wow. Ballast Point is being purchased for $1,000,000,000! One beeeelyon dollars. Insane.
- Jeremy Danner (@Jeremy_Danner) November 16, 2015
A record sum for a local craft beer company, founder Jack White said via press release: "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, and to achieve that vision, we needed to find the right partner."
Best known for its Sculpin IPA (and Grapefruit Sculpin), Ballast Point has more than 500 employees and produces beer in four local facilities, distributing to over 30 states.
Ballast Point sells to Constellation
Reuters: Ballast Point is selling to Constellation (Modelo/Corona) for about $1 billion. Would mean company is getting roughly 15X earnings.
- Darren Rovell (@darrenrovell) November 16, 2015
While critics accuse the craft brewery of "selling out," BP will continue to operate as a stand-alone business (retaining its existing employees).
Additionally, the sale signifies the trend of big companies gobbling up local craft brewers shows no sign of slowing down.