Tilray Brands Inc. acquired Montauk Brewing Company, a prominent brewery based in Montauk, New York.
Understanding the Acquisition of Montauk Brewing Company
In a significant move to expand its beverage alcohol portfolio, Tilray Brands Inc., a leading global cannabis-lifestyle and consumer packaged goods company, purchased 100% ownership of the Montauk-based brewery. This acquisition, which was announced in November, further solidified Tilray's position in the craft beer market.
Details of the Acquisition
The transaction involved a substantial investment by Tilray to fully integrate Montauk Brewing Company into its operations. The acquisition details, as disclosed in filings, reveal a multi-component payment structure.
Acquisition Breakdown:
| Component | Value (USD) | Details |
|---|---|---|
| Cash | $28,688,000 | This substantial cash payment formed the majority of the acquisition cost. |
| Stock | $6,422,000 | Paid in approximately 1,708,521 shares of Tilray Class 2 common stock. |
| Total Valuation | ~$35,000,000 | The overall acquisition was valued at approximately $35 million, integrating the cash and stock components. The sum of the precise cash and stock values is $35,110,000. |
This strategic purchase allows Tilray Brands Inc. to diversify its revenue streams and leverage Montauk Brewing Company's established brand and distribution network within the popular craft beer segment. Montauk Brewing Co. is known for its popular beers and its strong presence in the New York market.
