$69 million keg deal
TrenStar buys 1.9 million kegs from Scottish Courage, strikes management pact
May 7, 2002 - Denver-based TrenStar has struck a deal with brewing giant Scottish Courage to acquire 1.9 million beer kegs and to provide ongoing keg management service for the brewer.
TrenStar will make the fleet available to Scottish Courage under a container services agreement for a period of 15 years on a "per fill" fee basis. The fleet acquisition and ancillary equipment of approximately $69.4 million was funded by a major U.K. bank.
"The transaction is the first of its size and nature in the U.K.," said Alan Doyle, TrenStar's senior vice president of Business Development. "It is one of the largest mobile asset management projects to date and establishes TrenStar as an emerging and significant provider of asset purchasing offered together with technology and management services solutions to the European brewing industry."
TrenStar will use radio-monitoring technology, originally developed by S&N, and apply it to all 1.9 million beer kegs for tracking shelf-life, location and keg levels in pubs. S&N has kept a 25 per cent stake in the technology.
TrenStar CEO Greg Cronin said his company saw the deal as a springboard for setting up an industry-wide pool of beer kegs, enabling brewers "throughout Europe and the U.K. to reap the cost of benefits of greater efficiencies and economies of scale."
He said the company was in negotiations with several other major European brewers. "By establishing an industry-wide, centralized beer-keg pool, brewers will be able to save money on storage, transportation and inventory management," he said.
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