California beer brewer buying craft beer brewing equipment
The California Brewing Co. is buying brewing equipment and equipment related to brewing craft beer for its brewpubs.
The deal was announced Tuesday, marking the third such deal between the two companies.
It includes a 10-barrel system for brewing beers, as well as brewing equipment to make fermenters and fermenters-to-glass systems for serving beer.
The brewery is seeking a $150,000 loan from Caltech to help it complete the deal.
It also needs a 15 percent down payment on the deal, according to the filing with the Securities and Exchange Commission.
Caltech spokeswoman Melissa Brown said the loan is contingent on the brewery making progress on the purchase and the completion of the investment.
The loan is intended to enable the brewery to purchase equipment needed to maintain its operations, which are expected to take up to two years, Brown said.
CalTech’s beer program includes a two-year production facility and a three-year brewing and retail license, Brown added.
The acquisition is part of Caltech’s efforts to ramp up the university’s brewing operations.
Caltech last year purchased a 10 percent stake in a California brewing company called Craft Brewers of America and is pursuing its own brewing venture, Brown noted.
The two companies, which also are seeking approval from the state’s Beer Store Board, plan to have their first beer brewed by 2020.