US independent craft brewer Lord Hobo has announced plans to merge its business with New England peer Lone Pine Brewing.
Financial details of the transaction were not given.
The deal between the two brewers is expected to close in the fourth quarter of 2024.
US private-equity firm Valterra Partners, which holds a majority stake in Massachusetts-based Lord Hobo, led the investment in the merger, according to the brewer.
A new holding company will be created as part of the agreement, but both brewers are expected to retain their “own identity and name” following closure of the deal, Lord Hobo told Just Drinks.
The move is expected to help both breweries invest in innovation and quality of their products as well as “brand-building”. It is also expected to help grow market presence for both businesses.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“This structure provides us with the flexibility to innovate and grow within each brand, while upholding the values and ethos that define them,” the company said.
“By operating as separate entities under the holding company, we can better cater to our diverse customer bases and maintain the brand loyalty that each has cultivated over time.”
Speaking on the deal, Scott Macintosh, co-CEO of Valterra Partners, said: “Having changed management and turned around both the financial health and growth trajectory of Lord Hobo in 2023, this merger represents an important second step in realising our long-term vision of investing behind a scale, branded company that establishes itself as a pillar of the craft community in the Northeast.”
Lord Hobo CEO Simon Thorpe added that the agreement “creates a platform for craft brand growth, focused on marketing brands that have deep consumer resonance, that can travel and cross categories”.
He added: “We believe that investment in marketing behind true consumer brands is the only viable way in today’s market to build long-term success in craft.”
Founded in 2015, Lord Hobo brews a range of New England-style beers, including Galactic Vagabond IPAs and Boom Sauce double IPA. It also produces Life non-alcoholic beers.
Its goods are sold on- and off-premise in nine states besides Massachusetts, including New Hampshire, Florida, New York, Rhode Island, Pennsylvania and Ohio.
The group also manages a brewery in Woburn, Massachusetts, and a taproom in Boston.
Lone Pine Brewing, set up in 2016 by Tom Madden and John Paul in Portland, Maine, makes brands such as Juice Punch hazy IPA, Oh-J American double IPA and Portland Pale Ale. The brewer also operates in spirits with its American Craft Vodka.
Today, the group manages two locations – a tasting room and small batch brewing location in Portland, and its primary production site in Gorham, which opened in 2018.
Lone Pine distributes to 15 states aside from Maine, including Vermont, Michigan, Utah and North Carolina.
Commenting further on the merger, Lord Hobo CFO Jonathan Monie said: “As a result of post-Covid strategic shifts, breweries across the nation face challenges in terms of holding their distribution footprint against mounting raw material and other costs.
“Our platform aims to enhance the distribution capabilities of the brands in our network, driving sales growth through proven best practices in contiguous states. With Lone Pine’s retail footprint, we will establish additional retail satellites across the region.”
Monie added that “changes in licensing will allow our group to develop our spirits portfolio and entertain contract brewing, easing our way into future partnerships and avenues for growth”.
