U.S. Markets open in 33 mins

New Age Beverages Closes Brands Within Reach Acquisition

Eric TerBush

New Age Beverages Corporation (NASDAQ: NBEV) on Friday confirmed the closing of its previously announced acquisition of Brands Within Reach.

This move increases New Age Beverages’ North American footprint. As a result, New Age Beverages now owns the licensing and distribution rights to some of the most popular drink brands within the United States.

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more!

“We have been extremely busy integrating BWR and New Age," said Brent Willis, New Age Beverages CEO. "We have already integrated our sales and marketing organizations, have brought all our shared services functions to bear to benefit BWR, and are now harmonizing our operational footprint and supply chain. The process has gone extremely smoothly, and we are excited about the potential that the BWR brands represent in a number of our markets and channels, beyond just traditional retail.”

What’s Next

The two companies have been actively working on convergence including capturing more than $1.5 million in anticipated cost synergies that will accrue primarily in these areas: major distributor management, integrated warehousing and logistics, scale and efficiency benefits in transportation.

New Age Beverages also expects to achieve more than $10 million in revenue synergies within the first 18 months by cross-selling each other’s brands into existing key account relationships including Kroger, Costco, 7 Eleven, Circle K and others.

New Age Beverages traded about 3% lower Friday to $4.14 per share. The stock traded around $4.80 back on June 3 when the deal was first announced.

Never miss a news story in the cannabis world. Click here to check out Benzinga Cannabis for more.

Check out Cannabeizein to explore more comapnies like New Age Beverages.

Related Stories

Cramer Talks 'Unrealistic Expectations' Among Cannabis Investors

CannTrust Plummets Again After Voluntarily Halting Sales

Headset, Marijuana Business Daily Announce Data Partnership

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.