Tilray Brands, Inc., a global marijuana company, has closed a deal to acquire eight beer and beverage brands from Anheuser-Busch, roughly two months after entering into a definitive agreement.
Tilray has acquired Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy. The transaction includes current employees, breweries and brewpubs associated with these brands.
“Tilray has acquired a stellar lineup of eight craft beer and beverage brands that both solidify our leadership in the craft beer industry and strengthen our business in the expansive beverage sector in which we see tremendous opportunity to reinvigorate innovation across many categories including non-alcoholic beverages, energy, and nutritional drinks,” said Chairman and CEO Irwin Simon.
The deal is valued at around $85 million in cash. The price is seen by industry experts as being noticeably low. For example, SweetWater alone was acquired from $300 million in 2020.
The deal is expected to triple Tilray’s beer segment, increasing output from 4 million to 12 million cases annually.
“These beer and beverage brands possess the hallmarks of strong consumer loyalty and further diversify Tilray’s growing U.S. beverage alcohol segment”, said Tilray in a press release when the deal was first announced in August. “The expected sales volume of the acquired brands will elevate Tilray Brands to the 5th largest craft beer business position in the U.S., up from the 9th, with current brands SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company.”
Tilray Brands also owns Breckenridge Distillery, the award-winning spirits brand and the World’s Best Blended Whisky, and Happy Flower CBD sparkling non-alcoholic cocktails.
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