- Good Drinks Australia (GDA) and Victorian brewery Stomping Ground scrap their planned takeover deal
- On August 22, 2022, GDA signed a binding term sheet to acquire Stomping Ground for $7 million plus 4.5 million company shares
- However, GDA Managing Director John Hoedemaker says softer trading conditions mean the company would now “require more resources than initially anticipated to create meaningful value for GDA shareholders”
- Stomping Ground founder Steve Jeffares says the benefits of the merger for both companies were now “less compelling” than they were last year
- GDA shares are down 2.13 per cent and trading at 69 cents at 3:23 pm AEDT
Good Drinks Australia (GDA) and Victorian brewery Stomping Ground have scrapped a planned takeover deal.
On August 22, 2022, GDA signed a binding term sheet to acquire Stomping Ground for $7 million plus 4.5 million company shares.
GDA was expecting Stomping Ground to contribute $1.5 million to its earnings in the first year, with a target to grow annual volume to four million litres by FY27.
Today, however, GDA said both parties had agreed to no longer go ahead with the acquisition, saying “conditions have changed”.
“Stomping Ground is a great business, and their management team have done an excellent job of creating a relevant Victorian beer business and brand,” GDA Managing Director John Hoedemaker said.
“Unfortunately, recent conditions have challenged GDA’s underlying business case for the acquisition and would require more resources than initially anticipated to create meaningful value for GDA shareholders.
“We know Stomping Ground will continue to be a great craft beer brand and
wish the team all the best for the future.”
Stomping Ground founder Steve Jaffares said the business had recently experienced “softer trading conditions”, which made the benefits of the merger “less compelling”.
“We felt it was a smarter option for us both to focus our efforts and resources on consolidating in the markets we know and understand best: our own.”
GDA shares were down 2.13 per cent and trading at 69 cents at 3:23 pm AEDT.