Carlsberg has agreed to acquire Canada’s Waterloo Brewing for a total equity value of around CAD 144 million (approx. $106 million) in cash.

Founded in 1984, Waterloo Brewing claims to be Ontario’s largest Canadian-owned brewery. The company produces craft beers and ready-to-drink beverages under its own brands, while also offering contract manufacturing services for beer, coolers and ciders.

Under the terms of the agreement, Waterloo shareholders will receive CAD 4.00 (approx. $2.95) in cash for each share held. This implies an aggregate equity value for the company of approximately CAD 144 million and an enterprise value of CAD 217 million (approx. $159.8 million).

The deal is expected to strengthen Carlsberg’s position in the Canadian market with local production capabilities, and to deliver “significant supply chain and revenue synergies”.

George Croft, Waterloo Brewing president and CEO, said: “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”.

Carlsberg CEO Cees ‘t Hart commented: “One of our priorities in our Sail’27 strategy is to grow our business in attractive markets, wher we are small today, like Canada. The acquisition of Waterloo Brewing significantly improves our growth prospects in the Canadian market.”

The transaction is expected to close early in the first half of next year, subject to approval by Waterloo Brewing’s security holders and customary closing conditions.