KPS adds to brewery platform

KPS Capital Partners has acquired Burlington, Vermont-based Independent Breweries United, adding to the firm's North American Breweries platform.

KPS Capital Partners has acquired Independent Breweries United, adding to the firm's North American Breweries platform that invests in the beer and malt beverage industries. Financial terms of the transaction were not disclosed.

IBU is one of the largest craft brewers in the United States, producing brands like Pyramid, Magic Hat and MacTarnahan's beers. The Burlington, Vermont-based company has three breweries and six retail locations in Vermont, California, Oregon and Washington.

“For the past six years, the craft segment has been the fastest growing, beer category in the United States,” KPS partner Raquel Palmer said in a statement.

For the past six years, the craft segment has been the fastest growing beer category in the United States.

Raquel Palmer

KPS created their North American brewery platform in 2009 with the acquisitions of Labatt USA from Anheuser-Busch and High Falls Brewing Company from the US arm of French company Pernod Ricard.

The firm is currently investing from its third fund, which totals $2 billion. KPS closed Fund III in 2007 on $1.2 billion, but reopened fundraising for existing investors, eventually closing on an additional $800 million.

In the first quarter of 2010, KPS distributed a total of $260 million, including a $50 million distribution from portfolio company Global Brass and Copper, a source told PEO. In March, the firm recapitalised two portfolio companies – auto-parts supplier HHI and Attends Healthcare – for almost $400 million, collecting about $210 million in cash distributions for investors.

KPS' Special Situations funds include a number of private equity funds with over $2.6 billion of committed capital, focused on constructive investing in restructurings, turnarounds and other special situations.