Corona, California-based Monster Beverage Corporation has entered into a definitive agreement to acquire CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for $330 million in cash.
The transaction will bring the Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters and Wasatch 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 Hilton Schlosberg, Monster’s vice chairman and co-CEO.
“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 said.
“The team at CANarchy is thrilled to be joining Monster,” said Tony Short, CANarchy’s CEO.
“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,” he said
Evercore served as financial advisor, and Jones Day served as legal advisor to Monster. Latham and Watkins served as legal advisors to CANarchy.
For more information, visit monsterbevcorp.com or canarchy.beer.
