Carlsberg Group to strengthen market position in Canada through proposed acquisition of Waterloo Brewing.
The Carlsberg Group is pleased to announce that it has entered into a definitive agreement with Waterloo Brewing Ltd. (“Waterloo Brewing”) (TSX: WBR) to acquire all the issued and outstanding common shares of Waterloo Brewing for cash consideration of CAD 4.00 per share or a total equity value of approximately CAD 144 million in aggregate (including options). The acquisition is expected to strengthen the Carlsberg Group’s market position in Canada with local production and Waterloo Brewing’s brands, and to deliver significant supply chain and revenue synergies.
The transaction is expected to close early in the first half of 2023, subject to approval by Waterloo Brewing’s security holders and the satisfaction or waiver of other customary closing conditions.
Carlsberg’s international beer and cider portfolio complements Waterloo Brewing’s portfolio of local beers and ready-to-drink (RTD) beverages, creating a highly competitive company in the Canadian beer and RTD market. In addition, Waterloo Brewing’s production facility in Kitchener, Ontario, will produce some of the Carlsberg Group’s brands, including Somersby cider, which has been produced at Waterloo Brewing since 2020.
Carlsberg Group CEO Cees ’t Hart says: “One of the priorities of our SAIL’27 strategy is to grow our business in attractive markets where we are small today, such as Canada. The acquisition of Waterloo Brewing significantly improves our growth prospects in the Canadian market.”
Waterloo Brewing President and CEO George Croft says: “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 says: “This exciting opportunity will scale our business in Canada. The brand portfolios are complementary. 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.”
