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Drinks

Royal Unibrew To Buy Canada's Amsterdam Brewery In €40m Deal

Danish brewer and beverage maker Royal Unibrew will acquire Canadian craft brewer Amsterdam Brewery in a deal valued at around DKK 300 million (€40.3 million), Royal Unibrew said in a statement.

"The acquisition we are doing today is very important for the future growth of Royal Unibrew in the Americas region," chief executive Lars Jensen said in a statement.

"We are adding capacity in Canada, which is also close to our US business and over time we expect to serve most of Canada and partly United States from Amsterdam Brewery," Jensen added.

The vast majority of Royal Unibrew's revenue is generated in Europe. In 2021, around 11% of the company's net revenue came from its international segment, which includes the Americas, according to its annual report.

Amsterdam Brewery

The acquisition, which is expected to close in the third quarter of this year, placed an enterprise value on Amsterdam Brewery of approximately DKK 300 million, which will be paid on a debt free basis, Royal Unibrew said.

It expects the deal to be earnings-per-share accretive within the first year of ownership.

Amsterdam Brewery will bring a more premium offering to Royal Unibrew's current portfolio in Canada and its 'solid' position in the on-trade channel in Toronto will bring further synergies in the coming years, the Danish brewer noted.

The deal also supports Royal Unibrew's sustainability strategy, as it will help reduce its CO2 footprint significantly by reducing the transportation needs for products sold in the US and Canada.

News by Reuters, additional reporting by ESM. For more drinks news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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