This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Cannabis producer Green Thumb eyes Boston Beer merger
The CEO of the cannabis producer Green Thumb has pitched a prospective deal to Boston Beer in a letter to its founder, according to reports.
The move, which was reported by the Wall Street Journal, earlier today, revealed that Green Thumb boss Ben Kovler sent a letter to Boston beer founder and CEO Jim Koch on Sunday to table a “potential combination”.
Boston Beer, known best for its Samuel Adams lager brand, reportedly has a marker cap of US$3.6 billion, while Green Thumb is valued at closer to US$2.8 billion.
Proactive
According to the WSJ, Koch said in his letter to Koch: “As we look at a future where this consumer trend continues to gain traction, I believe we have to be proactive versus reactive.”
Green Thumb then told reporters in a statement that its “policy is not to comment on market rumours” in response to all of the “media speculation.”
However, since then, Japanese whisky maker Suntory hotly denied the claims and told db: “There is no fact that we are in any negotiations with Boston Beer.”
Shares
Since the rumours of a possible merger talks with Green Thumb, the sector has watched Boston Beer stock dropping 2% showing the knock on effect of the speculation over the beer business’s future.
Initially, Heineken and Molson Coors had been tipped as the most likely businesses to pick up Boston Beer, but since then investors have been keenly watching the situation unfold and commenting on who will acquire it.
At today’s price, Boston’s market capitalisation is said to about US$3.95 billion, far below its record valuation of US$15.98 billion in April 2021.
Green Thumb was set up in 2014 as a national consumer packaged goods company and retailer, selling a number of products including edibles and pre-rolled cannabis cigarettes. It also operates a number of dispensaries through its RISE brand across the US, totalling almost 100 by 2024.
Related news
Fugitive tycoon Vijay Mallya challenges Indian authorities over £700m asset seizures