A Deal Between Grandchildren

J. Peter Grace Jr., 53, is a grandson of the Irish-born chandler and trader who, in 1854, founded W. R. Grace & Co., first as a merchant shipper, later as a holder of huge Latin American in terests. Mrs. Lorraine Mulberger, 52, is a granddaughter of the German-born brewmaster who, in 1855, cooked up Miller High Life, one of the beers that have made Milwaukee famous. Last week Grace and Mrs. Mulberger agreed on a big business deal: for $36 million, Grace bought the 53% controlling in terest owned by Mrs. Mulberger and members of her immediate family in the Miller Brewing Co.

To Grace, the advantages of the buy were obvious. Since he took over the presidency of the family firm in 1945, the company, while remaining heavily invested in Latin America, has moved steadily toward diversification in both geography and products. For the sake of what Grace calls "motherhome knowledge," the company has rapidly expanded and diversified within the U.S. Financing expansion, Grace borrowed $100 million at 51% from a group of insurance companies, issued $84 million in convertible debentures at 41% , sold another $35 million in debentures in Europe. He was foresighted enough --or lucky enough--to raise this bundle of capital before interest rates began to rise.

Grace's main thrust has been into chemicals, and the company is now the U.S.'s eighth largest chemical manufacturer--which puts it among giants. It is also big in the food-and-drink field. Having already acquired chocolate companies in the U.S. and Holland, Grace so far this year has picked up Nalley's, Inc., a snack-food producer in Tacoma, Wash., with annual sales of about $45 million, and Marela, Ltd., a pickle firm in Britain. Before the end of 1966, Grace hopes to buy out Sea-Pak Corp. of St. Simons Island. Ga., a $25 million-a-year frozen-seafood company.

Last year W. R. Grace & Co. recorded its first billion-dollar sales figure, with profits of $45 million. And Peter Grace has every expectation that his new beer company will contribute to a bubbly future. The Miller Brewing Co. last year reported a record profit of $7,200,000 on sales of about $99 million. That being the case, why was Mrs. Mulberger willing to sell? She had a very special reason. A former Catholic and a divorcee, she now attends an Independent Fundamental church in Wisconsin. "The brewery was not the will of God for me," she said. "That's the reason I sold."

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