Monster to Acquire CANarchy Craft Brewery For $330 Million

© Reuters.

By Sam Boughedda — Monster Beverage Corp (NASDAQ:) will acquire CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for $330 million in cash.

Shares of Monster rose 0.6%.

While the transaction will include CANarchy’s brands such as Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch Monster’s portfolio, it does not include CANarchy’s stand-alone restaurants.

“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-Chief Executive Officer Hilton Schlosberg. 

“The acquisition will provide us with a fully in-place infrastructure, including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in this industry,” he added.

The transaction is expected to close in the first quarter of 2022.

Commenting on the acquisition, Stifel analyst Mark Astrachan, who has a buy rating and $107 price target on the stock, said in a research note that it is an inexpensive, low-risk acquisition.

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