Aphria Enters US Via SweetWater Brewing Purchase, Anticipates Federal Legalization
The Ontario-based cannabis company detailed a few strategic and economic advantages that could come up from this deal, with the most important one being the simple and fast access to the U.S. market in case of federal legalization.
Aphria also noted that the combined company is expected to yield between CA$650 million ($498 million) and CA$675 million of annualized pro-forma net revenue.
SweetWater Brewing, or SW Brewing Company LLC, is among the largest craft brewers — volume-wise — in the U.S., operating both nationally and internationally. Its portfolio of brands is in tune with a cannabis lifestyle, according to Aphria.
“We are excited to take this significant step forward to build upon our existing foundation in cannabis with the acquisition of SweetWater and their complementary cannabis lifestyle brands. Together, our company will further diversify our product offering, broaden our consumer reach and enhance loyalty with consumers,” Aphria CEO Irwin Simon said.
The company also welcomed SweetWater founder Freddy Bensch to its management team.
"We look forward to expanding our addressable market and leveraging SweetWater’s existing infrastructure to accelerate Aphria’s entry into the U.S. ahead of federal legalization of cannabis to fuel sustainable profitable growth," Simon added.
Under the deal, unitholders of SweetWater obtained $250 million in cash, funded from Aphria’s cash on hand, and $50 million in the company stock at closing.
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