Cannabis producer Tilray Brands (TLRY) is buying eight craft beer brands from international brewing giant Anheuser-Busch InBev (BUD).
The beer brands being acquired by Tilray include Breckenridge Brewery, Shock Top, Blue Point Brewing Co., 10 Barrel Brewing Co., Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.
The all-cash deal is valued at $85 million U.S., according to an 8-K regulatory filing made by Tilray.
The craft beer purchase from Anheuser-Busch InBev will make Tilray among the largest craft brewers in the U.S.
Tilray already owns other craft beer brands such as SweetWater, Montauk Brewing Co., Alpine Beer, and Green Flash.
According to the U.S. Brewers Association, Tilray will become among the top five craft brewers in the U.S. once the deal with Anheuser-Busch InBev closes by the end of September this year.
The transaction includes current employees, breweries, and associated brewpubs.
In total, Tilray will acquire production facilities in Portland and Bend, Oregon, Littleton, Colorado, and Patchogue, New York, as well as eight brewpubs across the U.S.
The deal is expected to triple the size of Tilray’s beer division, increasing its annual output to 12 million cases of beer from four million previously.
With its cannabis business struggling in Canada, Tilray is using craft beer to grow its presence in the U.S.
Tilray relocated its corporate headquarters from Toronto to New York City as it focuses on its U.S. expansion and tries to grow beyond cannabis.
The stock of Tilray has declined 44% over the past 12 months to trade at $3.10 per share.
Anheuser-Busch Inbev’s stock has increased 5% during the last year to $56.44 U.S. a share.
