Shares of the cannabis company Tilray Inc (NASDAQ:TLRY) fell Monday after it completed the acquisition of eight beer brands from Anheuser-Busch InBev (NYSE:BUD).
The acquisition, previously announced in August, includes 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 deal also includes the breweries associated with the brands.
Specific terms of the deal were not disclosed Monday, but Tilray previously announced it would pay $85 million in cash.
“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,” CEO Irwin Simon said in a statement.
The move positions Tilray as the fifth-largest craft brewer in the United States, up from ninth, with 5% craft beer market share, the company said.
The New York City company also owns SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, and Green Flash Brewing Company.
Tilray expects the transaction to triple its beer sales volume to 12 million from 4 million.
Tilray shares, which surged after the deal’s initial announcement, fell more than 5% Monday upon its completion. Anheuser-Busch stock dropped more than 3%.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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