Former Owners of C. Brewer Co. File Arbitration Claims against Balda AG
Thursday, January, 29, 2015
Chuck Brewer III and Michael Brewer, former owners of C. Brewer Co., have filed an arbitration claim against Balda AG, the firm that purchased the brothers’ company. Balda AG purchased the company from the Brewers in 2013 for $65 million and named the brothers CEO and COO of the new companies, renamed Balda C. Brewer and Balda Precision.
The Brewer brothers claim that as part of the purchase they were promised bonuses of up to $5 million based on performance goals, which they claim they were only unable to meet due to interference on the part of Balda itself. When the bonuses were denied, they sued, and Balda relieved them of their duties as company officers. In addition to the $5 million, they are also seeking arbitration costs and punitive damages.
The acquisition of C. Brewer has always been controversial for Balda, with a major shareholder in the company objecting to the purchase price, which it believed was inflated due to “goodwill and intangible assets” instead of the actual potential value of the company. The shareholder demanded a review of the purchase but was unable to stop it from going through.
Now the trouble acquisition is headed into arbitration as the Brewer Brothers seek to press their claim. Complicating matters is the lack of clearly written bonus language that either side could use to quickly prove their case, as much of the deal appears to have been made on a handshake-level