"Bell's Brewery Inc. to be sold? Larry Bell says it's possible"

Yeah, this is the real news in this thread to me. I'll worry about a sale if it happens someday.

 

I say he should sell it. Let Bell's go to hell with the "shareholders" and then he can start a new brewery with that money that is all his (and his children's).

 

I lol'd.

 

When someone is trying to trying to buy out minority shareholders, there are inevitably "holdout" problems -- basically, the last shareholders have all the leverage and can demand a very high price. So, there are often intense, hostile negotiations. Mr. Bell may really intend to sell, but this may also be posturing, which would be completely reasonable and expected in these circumstances.

 

That's deep.

 

I'm sure his battle with cancer took a lot out of him.

 

Hopefully that is never a factor for him again ...

 

In the main article Larry Bell states that due to the problems he his having with the shareholders he is putting the canning line on hold.

 

I posted to an earlier thread in the Great Lakes forum that has since been deleted. I was hoping kzoobrew had some more insight, but the poor man can only do so much. The way I understand it, his ex-wife is the one of the outstanding shareholders that has been a problem. The article talks about a previous lawsuit that "other shareholders" filed againt Larry a few years ago. There was also some significant controversy with these shareholders when they announced the major expansion that is just finishing up. It had to do with it being a completely cash project (I don't think it was financed at all), and that this was taking money away that would normally be paid to the shareholders. Anyway, I hope this is just saber-rattling and posturing, because I don't want to see Bell's sold. Love him or not, Larry has done a lot for craft beer and Kalamazoo.

 

According to this article Larry holds 56.2% of the shares and the rest is held by 39 other shareholders. But that information is years old at this point.

http://newhomebrew.com/blog/2012/04...l-says-its-possible-michigan-business-review/

 

There is no way they're not gonna feel they're being low-balled. They're basically being forced to sell or see the whole company get sold. I'm sure some of them would rather not sell their shares and bells not get sold but thats not an option. I'm sure the number Larry would have to come up with to have some of them sell would be ridiculous because those shareholders will feel like they're being forced to lose out on the growth that the company is sure to experience in the next few years and as a result the appreciation of their shares. They're probably thinking something along the lines of but my shares would be worth more than what you're offering in 3 years.

There's no better sale than the one you don't want to make because you will get every last penny that the guy that wants to buy you out is willing to give.

 

Larry c'mon down to Nashville and. Let's start a brewpub BrickBell South.... Lots of beer geeks down here you'd rule the place!

 

Granted, I don't know much about business/finance, but isn't this impossible? As long as he doesn't own the entire company, I don't see how he could sell the entire company. Wouldn't Bell just be selling his (and his family's) shares to some third party, giving them majority holding and therefore control over most of the brewery operations?

 

Not necessarily. Depends how the by-laws are written. In most cases a majority or a super-majority (maybe 67% of 75%) of shares voting yes can trigger a sale of ALL shares. Happens all the time with public companies. You cant get 100% of shareholders voting yes on anything.

 

I guess that makes sense.

 

Experience. Ive had stock Ive owned get sold out from under me a number of times. Sometimes you get cash, sometimes shares in the purchasing company, sometimes a bit of both. While the process is different (maybe) for privately vs publicly held companies, the principle is the same.

 

Transitioning ownership from one owner whether it be to heirs or other shareholders is never easy. As much as I love Bell's, I hope that the Bell family does what is best for their family.

 

I wasn't even aware that was a possibility. Would have been awesome....

 

No Bells beer here in NY, and far as I know, so long as Larry owns the company, no Bells beer EVER here in NY;

So, if selling the company means some future owner will ship Expedition Stout to NY all I gotta say is

SELL, BABY, SELL !!!!!!!

 

Yeah, I think it would be sad if he sold it. I can just see the philosophy and quality going down. It may make no difference, but it would somehow be a sadder day to me. Crazy Larry wouldn't be as crazy anymore.