Beer Distributor to Acquire Pete’s Brewing

The U.S. distributor of Corona and Moosehead beers has agreed to buy the struggling brewer of Pete’s Wicked Ale for about $68 million. The distributor, closely held Gambrinus Inc. of San Antonio, said it agreed to pay $6.375 a share for Pete’s Brewing Co., the second-largest microbrewery in the country. Palo Alto-based Pete’s said in February it had hired an investment banker to explore ways to boost the value of its stock. Its shares, which have traded between $3.44 and $6.96 in the last year, fell 13 cents to close at $5.88 on Nasdaq. Pete’s has been battling with newer microbreweries in recent years. It lost $6 million last year as sales fell to $65 million from $78 million a year earlier.