Tilray Brands, Inc. (Nasdaq: TLRY) (TSX: TLRY) has more than doubled its tap beer offerings after buying eight new brands from the largest brewing company worldwide Anheuser-Busch Inbev SA (EBR: ABI).
On Monday, the cannabis company announced the US$85 million transaction with the alcohol giant subsidiary Anheuser-Busch Companies LLC where it will acquire all assets and hire all current employees at breweries and brewpubs associated with the brands.
The all-cash deal puts Tilray as the fifth-largest craft beer operator in the United States adding four production facilities and eight brewpubs to its operations. The acquisition is expected to close by September this year.
The acquired brands include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy.
Tilray U.S Beer President Ty Gilmore said the transaction will triple in size of the company’s beer business from 4 million cases to 12 million cases per year.
.Looking ahead, we will further capitalize on the potential of these brands through product innovation, retailer partnerships and expanded distribution into key markets, including the Pacific Northwest and California,” he added.
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Tilray also owns the breweries SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Company and Good Supply Beer.
“We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities,” Tilray CEO Irwin D. Simon said in a statement.
“Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base.”
Tilray stock grew by 30.97 per cent on Monday to $4.06 on the Toronto Stock Exchange.
natalia@mugglehead.com
