Catawba Brewing Co. of Morganton announced Monday it is buying Charleston-based Palmetto Brewing Company.
Catawba’s owners, the Pyatt family, will retain 100 percent ownership of the joint company, Catawba said in a statement. The deal is expected to close by the end of this year. The Morganton brewery’s 10,000 square-foot Charlotte location, at 933 Louise Ave., opened last spring.
The terms of the deal were not disclosed. A Catawba spokesman said the merger came together quickly over the weekend, and that details are still being worked out. Catawba tasting rooms, for instance, will likely carry some Palmetto brands, he added.
With the deal, Catawba will nearly double its production: Palmetto will produce around 16,000 barrels in 2017, and Catawba will produce around 17,500, the company said.
The merger will not result in job losses, he said, but will instead “create opportunities” for personnel from both companies. Catawba employs about 25 people in Charlotte.
Catawba CEO Billy Pyatt said in a statement that a number of factors are making it hard for Catawba and Palmetto to remain competitive as small, independent brewers – including “market consolidation, product proliferation, and cost pressure,” he said.
“The opportunity for combined growth and shared resources will put both brands in a more competitive position to compete in the rapidly changing craft market,” said Palmetto owner Larry Lipov.
Catawba has other tasting rooms in Morganton and in Asheville.
This story first ran at CharlotteObserver.com.
Photos: Isaias Sanchez, Catawba Brewing Co.