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Preliminary accord announced for sale of Schmidt Brewery.

Preliminary accord announced for sale of Schmidt Brewery

G. Heileman Brewing Co. announced it has reached agreement to sell the 135-year-old Schmidt Brewery and certain brands to Sohan S. Sahota, president, North Country Beer Wholesalers, Inc.

Murray Cutbush, president and chief operating officer of the La Crosse, WI, brewer, said details of the preliminary agreement won't be immediately divulged to the general public.

He said the agreement "fulfills certain contingency conditions that were not fulfilled by the previous bids" that were rejected when Heileman intially put the facility up for sale.

He said Sahota had been "given a limited period of time within which to secure financing and finalize the deal."

Heileman officials had announced last week that all bids had been rejected for the St. Paul brewery, which dates back to 1855, and the plant would be closed on or shortly after June 23.

"We have always intended to sell the brewery," Cutbush said.

St. Paul's Mayor James Scheibel said a meeting was scheduled after the announcement to work on financing of the deal. Scheibel said final details of the agreement are expected to be worked out in the next week to 10 days.

"We need a good financing package," said Sahota.

Sahota, a beer wholesaler based in suburban Oakdale, said it would be premature to discuss if all 200 brewery jobs would be saved.

Heileman put the brewery and several brands, including Schmidt, Grain Belt, Hauenstein and Pfeiffer, up for sale in February.

Published reports had placed the Heileman's asking price at about $15 million for the brands, the plant and its inventory.

The preliminary agreement was announced after a private meeting with Gov. Rudy Perpich. The governor noted that the state Trade and Economic Development Department had previously offered the city a $500,000 grant to help keep the brewery open.
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Publication:Modern Brewery Age
Date:Jun 4, 1990
Words:304
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