Wealthy Street Mega Thread

[MJLO]

55 minutes ago, kwl said:

This is an absolute abysmal valuation if true and one wonders what their sales figures look like this year after hard seltzer has inevitably eaten into some of their session IPA cash-cow. 

Brewbound, which is very reputable, reported during the original Mahou investment(2014) that Founders turned down a complete buy-out at $300MM from MillerCoors. Founders has grown substantially then and is, by all evidence, exiting at an significantly lower multiple compared to 2014. 

Also, take into consideration that the 2014 investment was likely for growth capital and not buying out investors (what is happening right now) and this one looks like it hurts even more. 

Don’t get me wrong, hundreds of millions is a ton of money. But to exit at a lower valuation than Dogfish Head is unbelievable to me given the strength of their portfolio, annual production numbers, and footprint. 

If it were to be guesses, maybe the 2014 deal had some lofty hurdles the company wasn’t able to hit? 

Between this and the initial 2015 buy in ($96 million) from Mahou they are at $294million, and they retain a 10% stake.  What am I missing?

[RegalTDP]

25 minutes ago, MJLO said:

Between this and the initial 2015 buy in ($96 million) from Mahou they are at $294million, and they retain a 10% stake.  What am I missing?

Yeah, and Dogfish Head's merger valuation was reported as $300 million, so wouldn't that make Founders a slightly higher value?

[kwl]

1 hour ago, MJLO said:

Between this and the initial 2015 buy in ($96 million) from Mahou they are at $294million, and they retain a 10% stake.  What am I missing?

 

53 minutes ago, RegalTDP said:

Yeah, and Dogfish Head's merger valuation was reported as $300 million, so wouldn't that make Founders a slightly higher value?

Correct, summarized the math, but buying out a 60% stake at ~$194 million equates to a total valuation of ~$323 million. Also, let it be known that the Dogfish Head transaction was financed partially in Sam Adams stock (~42% at around $128 Million at time of close). 

What I find almost shocking is that Mahou picked up a 30% stake in 2014 for $96.3 million which equates to a total valuation of $320.6 million, meaning, based on what's reported, that Founders only built $3 million in equity value over the past 5 years. 

There's a few things that could be obfuscating the ~$194 number as that could be directly related to purchased of assets and the closing price was higher but took out debt (of which I assume there was a ton). There could also be separate LLCs that hold things like the gift store, the taprooms, etc. that Mlive didn't get through the FOIA request. 

[GRDadof3]

4 hours ago, kwl said:

 

Correct, summarized the math, but buying out a 60% stake at ~$194 million equates to a total valuation of ~$323 million. Also, let it be known that the Dogfish Head transaction was financed partially in Sam Adams stock (~42% at around $128 Million at time of close). 

What I find almost shocking is that Mahou picked up a 30% stake in 2014 for $96.3 million which equates to a total valuation of $320.6 million, meaning, based on what's reported, that Founders only built $3 million in equity value over the past 5 years. 

There's a few things that could be obfuscating the ~$194 number as that could be directly related to purchased of assets and the closing price was higher but took out debt (of which I assume there was a ton). There could also be separate LLCs that hold things like the gift store, the taprooms, etc. that Mlive didn't get through the FOIA request. 

Several of the articles mentioned Founder's sales of around 574,000 barrels per year (lower than I thought actually). How does that compare to Dogfish? 

Edit: one article put Dogfish at 300,000 barrels. Ooof. I would have to agree, this was a depressed sale apparently. Except that Founder's official line is that MLive got the numbers wrong...

[ironyisadeadscene]

I know its Kalamazoo, but is Arcadia dead?

[EastownLeo]

32 minutes ago, ironyisadeadscene said:

I know its Kalamazoo, but is Arcadia dead?

They are turning the current space into a restaurant and Arcadia seems to have stopped brewing.

https://wkfr.com/arcadia-ales-closing/

Edited September 18, 2019 by EastownLeo

[ironyisadeadscene]

2 hours ago, EastownLeo said:

They are turning the current space into a restaurant and Arcadia seems to have stopped brewing.

https://wkfr.com/arcadia-ales-closing/

This sucks. Whitsun was one of my favorites.

[arcturus]

Burnt City Brewing in Chicago.  They issue a card (NFC technology?) tied to your credit card which you swipe over the reader, activating the tap, chargeable by the ounce.  Tapping the screen provides further information about the beer.

[thebeerqueer]

1 hour ago, ironyisadeadscene said:

This sucks. Whitsun was one of my favorites.

I really enjoyed the Sky High Rye and Cereal Killer. 

One of the articles I read mentions the brewing facility being operated/taken over by a contract brewery and the Grand Woods just operating out of the taproom space. So we'll have to wait and see what comes of the actual brewery space. 

[joeDowntown]

Speaking of founders shareholders reinvesting locally:

https://mibiz.com/sections/manufacturing/founders-brewing-chair-to-lead-disruptive-startup-hydroponics-farm

[ironyisadeadscene]

It's not a great shot,  but this building is under construction 

[Pattmost20]

So old news that Paul Lee bought Jonny B'z. However it is going to shut down and become a new concept.

Royals - https://www.royalsgr.com - They have a FB page too

Appears to be diner style in that they will serve breakfast, lunch, and dinner all day long (not 24 hours, but open early, close late).

Edited September 20, 2019 by Pattmost20

[GVSUChris]

55 minutes ago, Pattmost20 said:

So old news that Paul Lee bought Jonny B'z. However it is going to shut down and become a new concept.

Royals - https://www.royalsgr.com - They have a FB page too

Appears to be diner style in that they will serve breakfast, lunch, and dinner all day long (not 24 hours, but open early, close late).

Wow! That's a really cool idea and I think a good transition for them to make! 

 

[GR_Urbanist]

Quote

So old news that Paul Lee bought Jonny B'z. However it is going to shut down and become a new concept.

Oh good grief.

We now have an opening for a decent burger joint on Wealthy. Maybe the new building going up can host an old-school Johnny B's concept?

Oops. Looks like the FB post did say they are still going to serve burgers.

 

Quote

We're keeping many of your current burger and hotdog favorites, plus expanding on the vegan and vegetarian options.

 

Edited September 20, 2019 by GR_Urbanist

[Pattmost20]

34 minutes ago, GVSUChris said:

Wow! That's a really cool idea and I think a good transition for them to make! 

 

I think it will be a big hit. Always good to have more options in the area.

 

Diner style places have become trendy again, a couple in Chicago are doing really well.

Dove's Luncheonette - http://www.doveschicago.com

Little Goat Diner - https://www.littlegoatchicago.com

Edited September 20, 2019 by Pattmost20

[mpchicago]

31 minutes ago, Pattmost20 said:

I think it will be a big hit. Always good to have more options in the area.

 

Diner style places have become trendy again, a couple in Chicago are doing really well.

Dove's Luncheonette - http://www.doveschicago.com

Little Goat Diner - https://www.littlegoatchicago.com

Little Goat is kind of a gourmet diner....And it's really good.   I would not be surprised to see Paul Lee bring this diner concept up a level. 

[Prankster]

38 minutes ago, mpchicago said:

Little Goat is kind of a gourmet diner....And it's really good.   I would not be surprised to see Paul Lee bring this diner concept up a level. 

Anything on the level of Little Goat would be a big win for GR. 

[GRDadof3]

On 7/2/2019 at 7:49 AM, GRDadof3 said:

Update on this project. 

This building looks just about finished. Any movement on potential tenants @terra firma? Nice addition to the neighborhood. 

[mpchicago]

On 9/20/2019 at 1:34 PM, Pattmost20 said:

So old news that Paul Lee bought Jonny B'z. However it is going to shut down and become a new concept.

Royals - https://www.royalsgr.com - They have a FB page too

Appears to be diner style in that they will serve breakfast, lunch, and dinner all day long (not 24 hours, but open early, close late).

The name Royals is a nod to the nearby streets intersecting Wealthy that are named after kings- James, Henry and Charles. 

https://www.grbj.com/articles/94331-burger-and-hot-dog-restaurant-closing

[GR_Urbanist]

Wall quickly going up @ 708 Wealthy.

[GR_Urbanist]

And the change from Jonny B's begins!

Is it known if those outdoor plans they had for the old parking lot we saw a few months back are still part of the general changeover?

[mpchicago]

1 hour ago, GR_Urbanist said:

And the change from Jonny B's begins!

Is it known if those outdoor plans they had for the old parking lot we saw a few months back are still part of the general changeover?

Yes , outdoor plans still on docket, and it appears that they are moving forward from your pic.

[GVSUChris]

17 minutes ago, WMrapids said:

Looks like the amphitheater won’t be near Millenium Park.

Correct. 

https://www.mlive.com/news/grand-rapids/2019/10/millennium-park-nixed-as-potential-site-for-proposed-large-scale-grand-rapids-amphitheater.html

The idea of putting it behind the VAA is...interesting...

[GRDadof3]

36 minutes ago, GVSUChris said:

Correct. 

https://www.mlive.com/news/grand-rapids/2019/10/millennium-park-nixed-as-potential-site-for-proposed-large-scale-grand-rapids-amphitheater.html

The idea of putting it behind the VAA is...interesting...

Totally....interesting... I don't know how it would work in such a confined space...

 

[kwl]

2 hours ago, GRDadof3 said:

Totally....interesting... I don't know how it would work in such a confined space...

 

Could you feasibly tear out the south, unfinished portion of VAA to allow somewhat of a stage setup that could be used internally or externally?

Although I agree, especially after seeing the 20-30 semi trucks that are staged behind the arena for the Eric Church show this weekend, it would be a very tight fit.