BROO BUYS MILDURA BREWERY FOR $1 MILLION
2 February 2017, Written by Business News Australia
BROO Limited (ASX: BEE) will acquire Victoria's Mildura Brewery for $1 million.
The Mildura Brewery, located in the former Astor Theatre, is a locally operated beer production and brewery pub business in Mildura, Victoria, which has been in operation since December 2004.The Mildura Brewery was one of the first craft breweries and contract brewing facilities in Australia and has played a significant role in the establishment and growth of the Australian Craft Beer Industry.
The acquisition of the Mildura Brewery will provide Broo with a commercial brewery facility to immediately commence its own beer production, providing Broo with the capacity to expand distribution of its beer products nationally. This will also significantly reduce production costs in turn providing increased profitability across sales of existing brands.As part of the acquisition, Broo will also be acquiring the various Mildura Brewery beer brands currently being produced at Mildura Brewery, and which Broo will add to its existing product portfolio, which includes Broo Premium Lager and Australian Draught.
Founder and executive chairman of Broo, Kent Grogan, says, "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."
"This model is in line with the Company's domestic growth strategy with additional sites currently being evaluated for further expansion."
"This model is in line with the Company's domestic growth strategy with additional sites currentlybeing evaluated for further expansion," says the ASX statement.
Completion of the acquisition to occur on 28 February 2017 subject to liquor licences being in place with a sunset date of
Broo is trading up 1.41 per cent at $0.360 per share in trading this afternoon.
Author: Business News Australia