Tilray Brands, Inc. is expanding its beverage portfolio by acquiring eight brands from Anheuser-Busch, making the cannabis company the fifth largest craft beer business in the U.S. by sales volume.

Brands involved in the transaction include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy. Tilray will also acquire four production facilities and eight brewpubs associated with these brands. 

The purchase price, which was not disclosed, will be paid in all cash. The transaction is expected to close later this year.

Tilray’s acquired brands will join SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company and Green Flash Brewing Company. Tilray Brands also owns Breckenridge Distillery and Happy Flower CBD sparkling non-alcoholic cocktails.

“Today’s announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy,” said Irwin D. Simon, Tilray chairman and CEO. “We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities. Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base.”

Simon noted the company aims to build on its beer platform in the U.S. when the federal government legalizes cannabis use.

“In a matter of three years, Tilray has solidified its leadership position in the craft beer industry, and we fully intend to be that change agent that reinvigorates the sector,” he said. “Upon federal cannabis legalization, we expect to leverage our leadership position, wide distribution network and portfolio of beloved beverage and wellness brands to include THC-based products and maximize all commercial opportunities.”

With the acquisition, Tilray expects to triple its annual output from 4 million cases to 12 million cases. Its craft beer portfolio is projected to generate pro forma revenue of $250 million.

“Tilray Brands reached out to us early this year with interest in purchasing these brands and breweries, and since then, we’ve had many positive conversations that led to today’s announcement,” said Andy Thomas, president, The High End at Anheuser-Busch. “The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands. We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the U.S.”