Danish brewer Carlsberg has announced that it has entered into an agreement with Canada's Waterloo Brewing Ltd to acquire all its issued and outstanding common shares for approximately CAD 144 million (€100 million).
The transaction, expected to close early in the first half of 2023, is subject to approval by Waterloo Brewing’s security holders and the satisfaction or waiver of other customary closing conditions.
"The acquisition of Waterloo Brewing significantly improves our growth prospects in the Canadian market.”
Market Position In Canada
Carlsberg seeks to strengthen its market position in Canada through this deal as its international beer and cider portfolio complements Waterloo Brewing’s portfolio of local beers and ready-to-drink (RTD) beverages.
The deal will also see Waterloo Brewing’s production facility in Kitchener, Ontario, producing some of the Carlsberg Group’s brands, including Somersby cider, which Waterloo Brewing has been producing since 2020.
Waterloo Brewing president and CEO, George Croft added, "We’ve enjoyed a close relationship with Carlsberg and are excited about becoming part of one of the largest brewing companies in the world.
"Waterloo Brewing will be a great fit with Carlsberg’s strong, purpose-driven culture, and our board of directors is confident that joining Carlsberg is the best long-term solution for our employees, partners, customers, consumers and community."
Managing director of Carlsberg Canada, Anders Rud Jørgensen stated, "Local sourcing will secure long-term robustness of supply, and increase commercial flexibility and speed to market for innovations, step-changing the way we operate.
"Waterloo Brewing’s excellent portfolio of long-standing co-packing relationships will benefit from these combined operations."
The boards of directors of both companies have approved the transaction, and Waterloo Brewing’s board of directors has recommended that Waterloo Brewing shareholders vote in favour of the transaction.
Directors and officers of Waterloo Brewing, collectively holding approximately 40% of its outstanding common shares, have entered into voting support agreements under which they have agreed to support and vote in favour of the transaction, Carlsberg noted.