Market Overview

New Age Beverages Expands Portfolio With Acquisition of Morinda

New Age Beverages Expands Portfolio With Acquisition of Morinda

New Age Beverages Corp (NASDAQ: NBEV) shares were trading higher Monday after the company announced the acquisition of Morinda Holdings. The transaction will expand New Age Beverages Corp's footprint and add a new line of products to its portfolio.

What Happened

New Age Beverages will pay for Morinda with $75 million in cash and $10 million in restricted stock. In exchange, Morinda will bring $25 million in working capital and no debt. The deal is expected to create $10 million in cost and revenue synergies that can be achieved over the next 12-18 months. 

Why It's Important

Morinda is a Utah-based company that focuses on products made from the noni plant. Its main product is noni juice, but it also markets skincare products and essential oils. Morinda operates as a multilevel marketing company. 

The noni plant is a species of the coffee family and is known to contain antioxidants, Vitamin C and potassium. The plant has been used in traditional medicine in many cultures and has a number of benefits attributed to it, such as anti-inflamatory and anti-viral properties. Noni, or also commonly known as great morinda, is also believed to help boost the immune system and repair cellular damage. 

The Benzinga Cannabis Capital Conference is the premier gathering of cannabis entrepreneurs and investors in North America. Click here to learn more about the event, which takes place Jan. 15-16 in Miami Beach, Florida.

What's Next

New Age Beverages estimates that the merger with Morinda, which should close sometime this month, will create the 40th-largest non-alcoholic beverage company in the world; Morinda has operations in 60 countries. The expansion could also help New Age Beverages expand the reach of its recently announced portfolio of CBD-infused beverages. 

New Age shares were trading higher by 7.56 percent to $4.98 at the time of publication Monday. 

Related Links:

Why You Should Be Careful With These Cannabis-Infused Beverage Stocks

7 Companies That Entered The Cannabis Space In 2018

Posted-In: Morinda Holdings New Age Beverages CorpCannabis M&A News Markets Best of Benzinga


Related Articles (NBEV)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Global Blood's Sickle Cell Disease Drug Snags Accelerated FDA Approval Pathway

Pro: Consumer Goods Stocks Surging In 'Clear Change' In Market Leadership