BUD Anheuser Busch Inbev SA NV

By Adriano Marchese

Tilray Brands shares soared Tuesday morning after reporting that it would expand its alcohol line through the acquisition of eight beer and beverage brands from Anheuser-Busch InBev.

The U.S. pharmaceutical, cannabis and consumer packaged goods company late Monday said that the acquisition will include Shock Top, Redhook Brewery and Widmer Brothers Brewing, among others.

At 10:56 a.m. ET, shares were trading nearly 28% higher at $2.84.

As part of the transaction, Tilray is set to take ownership of the breweries and brewpubs associated with the brands.

No financial details of the acquisition were disclosed, but Tilray said the purchase price will be paid in cash with a planned closing date later this year.

The move comes nearly a year after Tilray agreed to buy craft brewer and hard seltzer maker Montauk Brewing, in November 2022.

Tilray's beverage segment has been a strong contributor to the company's revenue, which rose 20% in its fourth quarter to $184 million, beating the $154 million forecast by analysts polled by FactSet. The growth was supported by a strong performance at its beverage alcohol segment, which generated net revenue 43% higher than the year prior, reaching $32.4 million.

Meanwhile, the company continues to face heavy competition in Canada's legal cannabis industry and stalled federal reform in the U.S.

Tilray closed its acquisition of cannabis consumer packaged goods company Hexo in June in a bid to bolster its market position in the cannabis space, which sits at 13% market share in Canada, according to the company.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

August 08, 2023 11:20 ET (15:20 GMT)

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