Firestone Walker and Duvel USA to Acquire Stone Brewing From Sapporo

Firestone Walker and Duvel Moortgat USA have agreed to acquire the Stone Brewing brand from Sapporo USA for an undisclosed amount, Brewbound reports. The transaction is slated to finalize within the second quarter of the fiscal year.

California-based craft brewery Firestone Walker — in which Duvel USA acquired a majority stake in 2015 and continues to operate independently — will assume ownership of the Stone Brewing brand in California, Texas, and other western U.S. markets, along with overseeing national accounts. Duvel USA will handle Stone’s distribution east of the Rocky Mountains, according to Brewbound. The two brands will also assume ownership of four taprooms in California.

The deal’s announcement comes weeks after Firestone Walker agreed to absorb California-founded craft brewery Trumer Pils from Gambrinus, a transaction set to close this summer. Both moves will expand Duvel USA’s craft footprint, particularly in California.

“We become the dominant craft player in L.A., San Diego, Orange County, which is part of the rationale for this in the first place,” Nick Firestone says in an announcement.

The acquisitions will also tack on roughly 280,000 barrels to Duvel USA’s overall production, raising its annual yield to nearly 900,000 barrels. The expanded ownerships mean Duvel USA will likely leapfrog Tilray Brands to the No. 4 seat in the Brewers Association’s ranking of craft brewing companies, per Brewbound.

Following the transaction’s completion, Stone’s production will shift to Firestone Walker’s Paso Robles, Calif. facility and Duvel USA’s Kansas City, Mo. facility. Sapporo will continue to brew Stone at its Richmond, Va., and Escondido, Calif., plants until the deal closes. The Japan-headquartered company is shopping around the Escondido brewery, but the Richmond facility will become its primary U.S. production site after the transaction.

While Firestone Walker and Duvel expect to offer jobs to a “significant number” of Stone’s hospitality, sales, and marketing employees, production roles will be assessed as operations transition to the new locations, Brewbound reports.

In a filing this morning, Sapporo Holdings claims to expect an $80 million impairment loss related to its Escondido, Calif., plant where Stone is currently brewed. It also anticipates $23 million in gains from the transfer of ownership in both tangible and intangible assets. That figure does not reflect the terms of the transaction.

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