LEAMINGTON, Ont. — Aphria Inc. says it will acquire SweetWater Brewing Company in a US$300-million deal.
The Leamington, Ont.-based cannabis company says the Atlanta, Georgia craft beer company will help it expand into the U.S. and access the market more quickly in the event of federal legalization.
SweetWater will become a wholly-owned subsidiary of Aphria through the deal and will receive $250 million in cash and about $50 million in Aphria stock at closing.
Aphria says SweetWater will be eligible to receive up to $66 million of additional cash under an earnout through the end of calendar year 2023.
SweetWater chief executive Freddy Bensch will continue running the subsidiary, but report to Aphria chief executive Irwin Simon and enter into a consulting agreement to last until the end of 2023.
Aphria says the deal has been unanimously approved by its board of directors and is expected to close by the end of the year.
This report by The Canadian Press was first published November 4, 2020.
Companies in this story: (TSX:APHA)
The Canadian Press