New investors and a restructured management team are expected to take over in April at City Brewing, according to the Wisconsin-based company that operates Latrobe’s brewery.
Meanwhile, the company says the pending loss of Iron City Beer production should have little effect at the plant, where new jobs have been created.
Pittsburgh Brewing Co. revealed in February that it plans sometime in 2022 to move production of its flagship beers — Iron City, IC Light, IC Light Mango, Old German Premium Lager, American and American Light, and Block House Brewing Summer Break — from Latrobe to a new facility Pittsburgh Brewing plans to build at a shuttered PPG glass plant in East Deer.
It appears that won’t be a major concern for City Brewing. According to a company spokesman, Iron City represents less than 3% of the business conducted at the Latrobe site.
Meanwhile, City Brewing has announced a plan to invest $630 million in the growth of the company, including a capacity expansion program and reopening of the shuttered Irwindale brewery in Southern California, which it is acquiring from Pabst Brewing Co.
The company’s expansion program has added more than 50 new jobs at the Latrobe brewery, which will continue to operate along with other City Brewing facilities in LaCrosse, Wis., and Memphis, the spokesman said. It employs more than 1,800 among the three locations.
City Brewing has announced an equity investment that will shift ownership of the company to a consortium of investors including Charlesbank Capital Partners, Oaktree Capital Management, Blue Ribbon Partners and City Brewing management.
Led by American beverage entrepreneur Eugene Kashper, Blue Ribbon Partners is a new investment platform focused on the U.S. beer and beverage industry. It also owns Pabst Brewing.
Upon closing of the ownership transaction, George Parke III will retire as CEO and chairman. COO Ross Sannes, who has been with the company since 2012, will become CEO. Serving as chair of the City Brewing board, Hans Savonije most recently was CEO of Royal Unibrew, a publicly traded brewer based in Denmark.
