KPS Capital Partners’ portfolio company North American Breweries has acquired Independent Brewers United through an indirect wholly owned subsidiary.

The acquisition is the fourth by North American Breweries since its formation. Financial terms of the transaction were not disclosed.

Independent Brewers United is one of the largest craft brewers in the US and its Magic Hat brand has been one of the fastest-growing craft brewers every year since 2005.

The company produces, markets and sells the complete line of the Pyramid, Magic Hat and MacTarnahan's brand families of beer. It operates three breweries and six retail locations located in Vermont, California, Oregon and Washington.

KPS formed North American Breweries in February 2009 as a North American platform for investments and growth in the beer and malt beverage industries. At that time, KPS also announced North American Breweries' first three acquisitions: Labatt USA from a subsidiary of Anheuser-Busch InBev; substantially all of the assets of High Falls Brewing Company (brewer of the Genesee, Honey Brown and Dundee family of beers); and a perpetual license for the Seagram's Escapes and Seagram's Smooth brands from Pernod Ricard USA.

Raquel Palmer, a partner at KPS, says: "Our strategy at NAB is to grow organically as well as through strategic acquisition. We have reviewed numerous potential acquisition opportunities over the past year, and IBU was clearly the best strategic fit for NAB. For the past six years the craft segment has been the fastest-growing beer category in the US. We believe IBU's craft brands, especially Pyramid and Magic Hat, with their authenticity and heritage, are highly complementary to NAB's current product portfolio. In addition, IBU's significant West Coast presence through Pyramid and MacTarnahan's greatly expands NAB's footprint, while Magic Hat solidifies NAB's strong presence in the Northeast."

Richard Lozyniak, chief executive officer of North American Breweries, says: "NAB has experienced tremendous success with our existing brands over the past year, and we are extremely excited about adding Magic Hat, Pyramid and MacTarnahan's to our family of beers. We have extraordinary respect for the great heritage of these breweries and for the high quality beer they have brought to their consumers over many years. We are impressed with the growth IBU has achieved to date, and our plan is to continue to grow these brands while maintaining a commitment to their heritage and superior quality. NAB now has leading brands in every segment of the beer and malt beverage market, four significant breweries strategically located on the East and West Coasts and an energised and committed workforce. As always, we are grateful to our consumers, distributors, suppliers and employees for their contribution to our success."