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Got an extra $300 million laying around?
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Forgive my typo!!!!
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Not really getting a brewery for that money, though, eh? Just a company.
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An interesting investment for Paul Kalmanovitz’s S&P Company:
1) S&P purchased Pabst in 1984 for $64 million ($132.62 million in 2009 dollars)
2) Closed over a dozen breweries including: Los Angeles, CA; Tampa, FL; Peoria Heights, IL; Newark, NJ; Tumwater, WA; Milwaukee, WI (plus all the Heileman/Stroh & General breweries) between 1984 through 2001.
3) Once brewed over 12 million barrels of beer back in 1984 and now contracts less than 4 million barrels today.
4) Now asking for $300 million. It does not add up.
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fixed
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1) 4 Million barrels = over 50 million cases
2) They probably sell a case to wholesalers for around $10,
3) Annual Revenue = approximately $500 million
4) A multiplier of less than one times revenue doesn’t seem too unreasonable
Selling price would have nothing to do with barrel production. The only thing that matters is dollars. In addition, in 1984 Pabst had low margins and high debt service, which made it a project rather than a thriving entity. Pabst is currently in better financial position, justifying a higher multiplier. Closing those breweries made is substantially more profitable, as did the additional labels it has picked up over the years (Heileman, Schlitz, Lone Star, etc).
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