Corrected, July 18 — Copenhagen | Reuters –– Danish brewer and beverage maker Royal Unibrew will acquire Toronto craft brewer Amsterdam Brewery in a deal valued at around 250 million Danish crowns (C$44 million), Royal Unibrew said in a statement on Friday.
“The acquisition we are doing today is very important for the future growth of Royal Unibrew in the Americas region,” Royal Unibrew CEO Lars Jensen said in a statement.
“We are adding capacity in Canada, which is also close to our U.S. business and over time we expect to serve most of Canada and partly United States from Amsterdam Brewery,” Jensen added.
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The vast majority of Royal Unibrew’s revenue is generated in Europe. In 2021, around 11 per cent of the company’s net revenue came from its international segment, which includes the Americas, according to its annual report.
Royal Unibrew, whose own brands include Royal, Lapin Kulta and Faxe, noted Amsterdam maintains a “solid position in on-trade in Toronto” through its two retail stores and two brewpub restaurants in that city.
Amsterdam was founded in 1986 as a Dutch-themed Toronto brewpub and expanded following its 2002 acquisition by Jeff Carefoote, who previously worked for major brewers Molson and Miller in Canada and the U.S.
The acquisition is expected to close in the third quarter of this year, 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.
— Reporting for Reuters by Nikolaj Skydsgaard; includes files from Glacier FarmMedia Network staff.
CORRECTION, July 18, 2022: Royal Unibrew on July 17 published a statement of correction, lowering the acquisition value. The initial announcement on July 15 had valued Amsterdam Brewery at about 300 million Danish crowns (C$52.8 million).
