Tilray Brands on Monday said it would buy eight brands from beer giant Anheuser-Busch (BUD), in a push by the Canadian cannabis company to boost its beverages portfolio.
Terms of the deal were not disclosed. Shares of TLRY were up 1.4% to $2.25 after hours.
TLRY will acquire the following beer and beverage brands from BUD: Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.
With the addition of the acquired brands, TLRY said it estimates pro forma revenue for its U.S. beverage alcohol portfolio to be about $300M. The deal is also expected to be accretive to TLRY’s EBITDA.
TLRY’s recent FQ4 report showed that the company’s beverage alcohol segment generated $32.4M in revenue for the quarter, a jump of 43% Y/Y.
“With this transaction, our beer business is expected to triple in size from 4 million cases to 12 million cases annually,” Ty Gilmore, president of U.S. beer at Tilray (TLRY), said in a statement.
#Tilray has entered into a definitive agreement to acquire 8 beer & beverage brands from Anheuser-Busch.
Incl: Shock Top, 10 Barrel, Redhook, Widmer Brothers, Square Mile Cider, HiBall Energy.$TLRY $2.42 ▲ 0.20 (9.23%) AH$BUD $56.48 ▲ 0.045 (0.08%) AHhttps://t.co/kMX7y8HSEW pic.twitter.com/0RGuJyBTts— Traders Community (@TradersCom) August 7, 2023