Cannabis company Aphria Inc. (Nasdaq: APHA) is acquiring craft brewer SweetWater Brewing Co. for $300 million. As a result, TSG Consumer Partners will exit its minority stake in the company. The target has a portfolio of 420 beers.
“Our strong balance sheet and access to capital have enabled us to enter the U.S. through this strategic and accretive acquisition,” says Aphria CEO Irwin Simon. “We will establish and grow our U.S. presence through SweetWater’s robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise.”
In addition to diversifying into the beverage sector, Aphria says the acquisition will allow the company to set itself up more quickly if and when the U.S. Federal government legalizes cannabis.
Ropes & Gray LLP is advising TSG. Arlington Capital Advisors and Winston Strawn LLP are advising SweetWater. Jefferies LLC and DLA Piper LLP (U.S.) are advising Aphria.