Aphria Inc said on Wednesday it plans to buy American craft brewer SweetWater Brewing Co for $300 million, as part of the Canadian cannabis company’s efforts to enter the U.S. beverages market.
Aphria said the deal is expected to be immediately accretive to its earnings per share and likely to close before the end of the year.
The deal comes as profitable cannabis companies are ready to invest in niche segments to expand their brands.
Unitholders of SweetWater, which will become a wholly owned unit of Aphria, will get $250 million in cash and about $50 million in Aphria stock at deal close.
“We will build brand awareness for our adult-use cannabis brands … in the growing $29 billion craft brew market in the U.S. ahead of potential future state or federal cannabis legalization,” Apria’s chief executive officer Irwin Simon said.
A handful of U.S. states, including Montana, New Jersey and Arizona, on Wednesday voted to legalize recreational use of marijuana, taking the tally of states where it will be legal to 15 plus the District of Columbia.
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