Aphria Inc, a leading Canadian cannabis company with a market capitalization of USD 1.2 billion which is listed on the Toronto Stock Exchange and NASDAQ, reported today it has closed the accretive, strategic acquisition of SweetWater Brewing Company, one of the largest independent craft brewers in the United States based on volume.
The deal which was already announced four weeks ago will make SweetWater a wholly owned subsidiary of Aphria. (inside.beer, 4.11.2020)
"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," commented Irwin D. Simon, Aphria Inc.'s Chairman and Chief Executive Officer. "We are very pleased to welcome Freddy Bensch to our management team and the entire SweetWater organization to the Aphria family. 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."
As part of the acquisition, unitholders of SweetWater received USD 250 million in cash and USD 50 million in Aphria stock at closing. Aphria financed the cash component of the purchase price under the agreement through available cash on hand, including the recently raised funds under its At-the-Market equity program.
Jefferies LLC served as financial advisor and DLA Piper LLP (U.S.) and Fasken Martineau Dumoulin LLP (Canada) acted as legal counsel to Aphria. Arlington Capital Advisors served as financial advisor and Winston & Strawn LLP acted as legal counsel to SweetWater.