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100% of cost – non participating 1st TD
Remember the slogan “It’s the Water” for Olympia Brewing Company? Steve Bram and David Rifkind brought the full force of our private mortgage placement capabilities to help the All-American Bottled Water Company purchase the famed Olympia Brewery, Tumwater, WA from Miller Brewing Company in record time. A-ABWC had a purchase contract with Miller to buy all of the assets and the real estate for a sweetheart price as long as it closed by Miller’s fiscal year-end (3/31).
Here is an outline of the assets:
- 176 acres of prime, urban infill land adjacent to Olympia, WA
- 9 fully operational buildings on separate parcels totaling 3,700,000 sq. ft.!
- $70,000,000 of replacement cost equipment
- Control of Tumwater’s famous artesian water sources which are fed by Mount Rainer and provide 200,000,000 gal. per day of drinking water with extraordinary purity (federal guidelines for bottled water allow for up to 44 P/PM of “stuff” and these wells contain only 2 P/PM)
Miller Brewing Co was acquired by a large South African conglomerate. This was Miller’s smallest bottling facility. They balked at the cost of a modern retrofit and put this operation on the market. This facility will allow our client to utilize the water source, the bottling equipment and distribution facilities to fulfill large private label contracts for major retailers like Costco, Walmart and the US Armed Services.
The shuttering of this facility by Miller caused major economic and social dislocation in the region. At full capacity, the plant employed over 1,000 employees. There are many families in the area with three generations of plant employees in their household.
Restarting the plant as a water bottling facility will immediately allow the rehiring of 400 displaced employees giving a moral and financial boost to the region.
Our Bridge Financing Provided:
- 100% of cost to purchase the facility and equipment.
- Interest reserve.
- Start up capital to get the bottling lines rolling.
- 3 year term, interest only – Non Participating.
- Non Recourse.
- Release schematic allowing for maximum flexibility to refinance both real estate and equipment assets.
- 10 day turnaround from presentation of the deal to GSP to close. This was a highly complex transaction with many moving parts and a public company seller. TIMING, EXECUTION AND CREDIBILITY OF CLOSE CREATED MILLIONS OF DOLLARS OF OPPORTUNITY FOR OUR CLIENT.
Miller’s Tumwater Brewery Acquisition FAQ:
Q: Is it really the water?
A: Yes – liquidity is the thing
Q: What does a 2000’ bottling line look like?
A: Exactly like the opening credits of Laverne and Shirley
Q: What’s the deal with the Artesian Springs?
A: Steve and David met with some prominent Artesians on the site visit and can attest to the importance of Artesian rights.
(Steve Bram, David Rifkind)
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