Canadian cannabis company Tilray expanding into beer business with $85M deal with Anheuser-Busch

Tilray Brands Inc. is expanding its case of craft brews, announcing a deal to buy eight beer and beverage brands from Anheuser-Busch Companies LLC.

In a filing with the U.S. Securities and Exchange Commission, Tilray puts the purchase price at $85 million US to be paid in cash.

The cannabis company says the agreement will triple both its basket of brands and its beer sales volume, which it projects will increase to 12 million cases per year from four million.

Tilray says that growth would vault it to the status of fifth-largest craft beer operation in the United States.

The deal between the Leamington, Ont.-based Tilray and Missouri-based beer giant Anheuser-Busch is expected to close later this year.

The eight brands are Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.