It appears that the craft brewing industry is the place to be. Monster Beverage Corp (NASDAQ: MNST) is the latest firm to enter the fray, as it looks to diversify its operations and add a beverage alcohol component.
Monster Beverage this morning announced that it would be acquire CANarchy Craft Brewery Collective, whom is reportedly a top ten craft brewer in the United States. The firm is being acquired for $330 million in an all cash transaaction.
A number of brands will come under the Monster umbrella following the completion of the acquisition, including Perrin Brewing, Deep Ellum, Cigar City, Oskar Blues, Wasatch and Squatters. Stand-alone restaurants operated by CANarchy meanwhile will not be acquired. The company currently sells its products throughout the US and in 20 additional countries.
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From an organizational perspective, the firm is to operate independently from Monster, with the existing energy business remaining unchanged. The purchase however is “a springboard from which to enter the alcoholic beverage sector.”
The acquisition is expected to close in the first quarter of 2022.
Monster Beverage Corp last traded at $93.98 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
