Genesee sale falls through

Corporation considers alternatives; management buyout possible

May 2, 2000 - Genesee Corporation has terminated its deal with City Brewing Co. to purchase Genesee Brewing Co. and plans to retain the business, at least in the short term.


"We believe that the interests of our shareholders will be better served by terminating the agreement, which will allow management to focus on our brewing business during the critical summer selling season," said Tom Hubbard, president and chief executive officer of Genesee Corporation.

Terminating the agreement will also allow the corporation to explore other strategic alternatives for its brewing business. "While we work to improve the performance of our brewing business, we will also continue to explore strategic alternatives, including a possible management-led buyout of the brewing business," Hubbard said.

Under the terms of an agreement that City Brewing Co., a subsidiary of Plantinum Holdings, and Genesee entered into in December the transaction was to have closed in March. The agreement was terminated because certain conditions set forth in the agreement were not met.

Genesee Brewing Co. -- located in Rochester, N.Y. -- is the nation's fifth largest brewer.

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