THE BURNED OVER DISTRICT

From Bloomberg:

Pabst Brewing Co., the closely held 170-year-old American brewer, agreed to be acquired by the Russian company Oasis Beverages in a deal a person familiar with the matter pegged at $700 million to $750 million.

Private-equity firm TSG Consumer Partners LLC will acquire a minority stake in Pabst as part of the transaction, the companies said in a statement on Sept. 18. The person with knowledge of the transaction size asked not to be identified because the terms weren’t publicly released.

The deal puts the iconic Pabst Blue Ribbon brand in the hands of a Russian company amid a tense time for U.S. relations with the country. The U.S. and Europe have imposed economic sanctions against Russia because of its annexation of Ukraine’s Crimea in March and its support for separatists in eastern Ukraine. Russian President Vladimir Putin has struck back with his own sanctions, and the political standoff has affected American companies like McDonald’s Corp. and Exxon Mobil Corp.

The Pabst deal, however, likely won’t meet resistance from a Russian government that’s eager to show the world it is open for business, said Gene Grabowski, senior strategist at Levick Strategic Communications in Washington.
Photographer: Jim Heimann Collection/Getty Images

“Putin has every incentive to make sure there are no roadblocks to the deal,” Grabowski said. “On a global stage, it looks like business remains robust in Russia and you can do business there.”

Metropoulos & Co. is selling Pabst, which also brews Schlitz and Old Style beers, four years after acquiring the brand for about $250 million. Metropoulos is also part owner of Hostess Brands, the maker of Twinkies snack cakes.

I knew nothing good would come of the sale to Metropoulos. The first thing he did was give it over to his kid who moved the HQ from Milwaukee to La-La Land.