SABMiller in $215m deal for 2 McKenzie brands

NEW YORK: Miller Brewing said on Monday that parent company SABMiller reached an agreement with McKenzie River Corp to acquire two alcoholic drink brands for $215m.

Both Sparks, a caffeinated alcohol malt beverage launched in ‘02, and lager beer Steel Reserve are already brewed by Miller under a contract with San Francisco-based McKenzie River, Miller said.

Miller also said that SABMiller will form a new product development partnership with McKenzie River under the leadership of founder and President Minott Wessinger.

The majority of Sparks and Steel Reserve volume is currently distributed by US wholesalers that also carry Miller brands, the company said in a statement.

Sparks posted a compound annual growth rate of 107% between ‘03 and ‘05, while sales of Steel Reserve grew at a 35% CAGR between ‘03 and ‘05, it said. Completion of the transaction is subject to the customary review by US antitrust authorities, Miller said.