Aphria is reaching across the border for a new acquisition, reported Bloomberg. The Canadian marijuana company announced Wednesday, November 4, that it has reached an agreement to buy American beer maker SW Brewing Company, also known as SweetWater Brewing. The price is around US$300 million; Aphria was not more specific.
SweetWater dates from the big emergence of craft beer in the 1990s, and has various beers that use what Aphria describes as “terpenes and natural hemp flavors that, when combined with select hops, emulate the flavors and aromas of popular cannabis strains.” The company was founded in 1997, and according to Aphria, its products are distributed to 27 states and the District of Columbia.
In 2019, Aphria says, SweetWater booked net revenue of US$66.6 million, and its adjusted earnings before interest, taxes, depreciation, and amortization were US$22.1 million.
Owning SweetWater will give Aphria something of a stalking horse in the likely case that legalized marijuana continues to expand in the US, particularly when and if this occurs at the federal level.
“In addition to acquiring a strong brand and accretive business, this strategic acquisition positions Aphria with a platform and infrastructure within the US to enable it to access the US market more quickly in the event of federal legalization,” the company stated in the press release announcing the SweetWater deal.
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