Redhook, Widmer Brewers to Combine
SEATTLE – Craft brewer Redhook Ale Brewery Inc. said Tuesday it has agreed to combine its operations with rival Widmer Brothers Brewing Company to form a new beer company called the Craft Brewers Alliance.Under the deal, Redhook and Widmer shareholders will each hold about 50 percent of the outstanding shares of the new company, Redhook said.
The two have already combined their sales and marketing operations in a joint venture called the Craft Brands Alliance and said the brewers will be stronger as a single company.
Redhook said Dave Mickelson, its president and chief operating officer, will serve as co-chief executive with Terry Michaelson, president of Craft Brands Alliance.
Kurt Widmer, president and brewmaster at Widmer, will be the new company’s chairman and Paul Shipman, founder and CEO of Redhook, will be the company’s chairman emeritus, Redhook added.
Redhook said even though the companies will be operating under one name, they will continue to keep the Redhook and Widmer brands separate.
Redhook brews craft and seasonal beers including Blackhook Porter, Redhook Long Hammer IPA and its flagship Redhook ESB. Widmer, meanwhile, brews a popular hefeweizen beer, Drop Top Amber Ale, Broken Halo IPA and a number of seasonal brews.
The deal is expected to close during the first quarter of 2008. Following the close of the deal, the new company will trade under Redhook’s symbol HOOK.
Redhook shares fell 2 cents to close at $6.10.
© 2007 The Associated Press