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01/2022

CANARCHY CRAFT BREWERY acquired by MONSTER BEVERAGE CORPORATION

UNITED STATES Food Processing / Beverages / Wines & Spirits EV 300M - 700M USD

Context

Monster Beverage Corporation has entered into a definitive agreement to acquire CANarchy Craft Brewery Collective LLC for a total cash consideration. This acquisition represents a landmark strategic pivot for Monster, serving as its primary entry point into the alcoholic beverage sector. The transaction includes CANarchy’s full industrial infrastructure, alcoholic beverage licenses, and a dedicated management team with deep expertise in malt-based product development and manufacturing. A key element of the deal structure is the independence of CANarchy’s organizational structure, which will continue to function separately from Monster’s core energy drink business. The strategic rationale for the merger is to capitalize on the convergence between energy drinks and hard seltzers, providing Monster with a turnkey platform to develop and launch "cross-over" alcoholic products. By integrating CANarchy’s craft expertise with Monster’s global brand power, the combined entity aims to meet the evolving needs of consumers seeking innovative alcoholic flavors. Notably, the transaction excludes CANarchy’s stand-alone restaurants, focusing strictly on the scalable production and distribution assets of the collective.

CANARCHY CRAFT BREWERY, which reported an EBITDA margin of in 2021, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (10.5x).

-> Deep-dive in AgriFood market trends

Target

CANarchy is a disruptive collective of high-growth craft breweries and hard seltzer producers. At the time of acquisition, it ranked as a top 10 US craft brewery, managing an iconic portfolio of regional brands including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch. The collective’s product offering spans various popular categories, from the Jai Alai IPA to Wild Basin Hard Seltzer. CANarchy operates with a robust manufacturing and distribution infrastructure that supplies products across all 50 U.S. states and 20 international territories. Its business model is centered on preserving the unique "craft" identity and innovative flavor profiles of its individual member breweries while utilizing a centralized platform to achieve economies of scale in sourcing, production, and logistics.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2021
2020

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REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 100M - 200M USD

EBITDA range: 25M - 50M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CANARCHY CRAFT BREWERY by MONSTER BEVERAGE CORPORATION are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.