More deals as Broo buys Mildura
Recent ASX entrant Broo Limited hasannounced it will acquire Victoria’s Mildura Brewery as a going concern for $1 million.
Today’s deal follows yesterday’s news, revealed by The Crafty Pint, that Dixon Hospitality had purchased Hawthorn Brewing Company. The previous day, New Zealand’s DB Breweries announced the purchase of Tuatara Brewing Company.
Like Hawthorn yesterday, Broo’s purchase of Mildura comes out of left field, although Broo did foreshadow its plan to find its own brewery site in its IPOprospectus.
“The acquisition of the Mildura Brewery beer production business will provide Broo with a commercial brewery facility to immediately commence its own beer production, providing Broo with the opportunity and capacity to expand distribution of its beer products nationally,” the company said in a statement.
“This will also significantly reduce production costs in turn providing increased profitability across sales of existing brands.”
The acquisitionincludes the various Mildura Brewery beer brands, which Broo will add to its existing product portfolio.
Broo founder Kent Grogan said the deal was “in line with the company’s domestic growth strategy with additional sites currently being evaluated for further expansion”.
“The acquisition of the Mildura Brewery pub venue also provides Broo with an exciting extension of our existing business by providing a micro-brewery hospitality venue for Broo to showcase and realise retail margins for its beer products,” he said.
Founded in December 2004, Mildura Brewery is located in the former Astor Theatre in Mildura, Victoria.