Molson Coors Beverage Co. (NYSE: TAP) said Wednesday it will buy craft beer maker Atwater Brewery as Molson continues to expand beyond its traditional mass-market offering and Atwater seeks to expand in an increasingly competitive craft market. Atwater is Detroit's largest craft brewer.
Molson's Tenth and Blake Beer Company craft unit will complete the transaction in the next couple months, the company said. Terms of the deal weren't disclosed.
Atwater also produces hard seltzers and craft spirits, seen as growing segments in the beverage industry.
"For Atwater to continue to grow, it will require both capital and brewing expertise," Atwater owner Mark Rieth said in a statement. "Tenth and Blake brings both, which makes them the ideal strategic partner to help us continue to live our mantra 'Born in Detroit. Raised Everywhere.'"
NEWS: Today we're excited to announce we've agreed to acquire Atwater Brewery, the fourth-largest craft brewer in Michigan. The deal is our fifth U.S. craft acquisition and the first since 2016. We're excited to welcome Mark Rieth and team into the fam!https://t.co/b05o4nxDJ3
— Molson Coors (@MolsonCoors) January 22, 2020
Atwater Brewery was founded in 1997 and has become a popular beer in much of Michigan. The company also operates taphouses in Detroit, Grand Rapids and Grosse Pointe Park. Rieth and Atwater's current management team will continue to lead its day-to-day operations.
Shares of Molson Coors were essentially flat on Thursday, trading at $56.48.