New Age Beverages is the parent company behind multiple brands including Tahitian Noni, TeMana, Búcha Live Kombucha. As part of the acquisition, New Age will gain brand licensing and distribution rights to multiple healthy brands, including Nestea, Volvic, and Illy Ready to Drink Coffee.
New Age said the acquisition will help widen the gap between rival beverage companies as it could become the "preeminent one-stop-shop provider" of healthy beverages. The deal will also significantly increase its North American sales and marketing, supply chain, and distribution presence to generate cost and revenue synergies.
Why It's Important
The acquisition of Brands Within Reach and access to its distribution portfolio "is incredible," New Age CEO Brent Willis said in the press release. The distribution capabilities it also gains from the deal is "equally as impacting."
"The combination of our brands, teams and infrastructure is unique and best in class, and a great value for our customers to work with one major company who can provide them with a full portfolio of growth brands in growth categories underpinned by superior execution and brand support," Brands Within Reach founder Olivier Sonnois also said in the press release.
The combination will bring the scale of New Age to more than $320 million and will contribute to bottom line profitability.
New Age's stock traded lower by 4.9 percent at $4.80 per share Monday morning. The stock has received significant attention over the last year for its CBD-infused beverages.
Need more cannabis news? Check out all of our coverage here.
CBD Drink Maker New Age Beverages Trades Higher On Q4 Print
Walmart To Start Carrying New Age Beverages' Marley Brand Products
See more from Benzinga
- Blackstone's .7B E-Commerce Investment Is Largest Private Real Estate Transaction Ever
- Trump On CNN: 'Why Doesn't AT&T Do Something?'
- Musk Compares Tesla Pickup Truck To The F-150, Says It Will Cost Less Than ,000
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.