Monster Beverage Corp. announced that it has entered into a definitive agreement to acquire craft beer and hard seltzer company CANarchy Craft Brewery Collective for $330 million in cash.
The transaction will bring the Cigar City (Jai Alai IPA and Florida Man IPA), Oskar Blues (Dale’s Pale Ale and Wild Basin Hard Seltzer), Deep Ellum (Dallas Blonde and Deep Ellum IPA), Perrin Brewing (Black Ale), Squatters (Hop Rising Double IPA and Juicy IPA) and Wasatch (Apricot Hefeweizen) brands to the Monster beverage portfolio. The transaction does not include CANarchy’s stand-alone restaurants.
The transaction is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including regulatory approvals. Monster’s organizational structure for its existing energy beverage business will remain unchanged. CANarchy will function independently, retaining its own organizational structure and team, led by Tony Short.
“This transaction provides us with a springboard from which to enter the alcoholic beverage sector,” said Monster’s Vice Chairman and Co-CEO 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.”
Monster’s Chairman and Co-Chief Executive Officer Rodney Sacks commented that the addition of CANarchy and its brands to the Monster beverage portfolio represents an excellent opportunity to further grow Monster’s already robust product offerings. “We are excited to build and expand upon CANarchy’s existing brands with innovative new products,” he added.
CANarchy’s CEO Tony Short sees the acquisition as an avenue to meeting the expanding preferences of a fluid market demand. “We look forward to capitalizing on the combined expertise of Monster and CANarchy to further strengthen our current alcoholic product offerings, expand our product portfolio to meet the ever-changing needs of our customers and to grow our business,” said Short.
Evercore served as financial adviser, and Jones Day served as legal adviser to Monster. Latham & Watkins served as legal adviser to CANarchy.
Based in Corona, Calif., Monster Beverage Corp. is a holding company and conducts no operating business except through its consolidated subsidiaries.
Founded in 2015, CANarchy bills itself as a disruptive collective of like-minded brewers dedicated to bringing high-quality, innovative flavors to drinkers everywhere. CANarchy provides craft beverages throughout the United States and 20 countries and U.S. territories.