Tilray agrees to buy four Molson breweries (update)

Update 2:40 PM EST: Adds comments from Tilray

Tilray Brands (NASDAQ:TLRY) announced Tuesday it has agreed to buy four breweries from Molson Coors Beverage Company (NYSE:TAP), a transaction expected to increase the Canadian cannabis company’s leadership in the U.S. craft beer market.

The transaction includes Molson Coors’ (TAP) craft breweries, Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. Once the deal is finalized, Tilray’s (TLRY) beverage portfolio is expected to add 30% of new beer-buying accounts.

Previously: Canadian cannabis company Tilray Brands (TLRY) is closing in on an agreement to acquire some of the drinks labels owned by the U.S. brewer Molson Coors Beverage (TAP), Bloomberg News reported Tuesday, citing people familiar with the matter.

Molson Coors’ (TAP) Revolver, Atwater, Hop Valley, and Terrapin brands are said to be the subject of the discussions, and the people said that an agreement could be announced as early as Tuesday.

Tilray (TLRY) refused to comment on the talks, and Molson Coors (TAP) was not immediately reachable for comment.

If finalized, the deal will further advance Leamington, Ontario-based Tilray’s (TLRY) diversification strategy. In October, the Canadian Licensed Producer acquired several beer and beverage brands from Anheuser-Busch (BUD), adding to its portfolio, which included brands such as SweetWater Brewing Company and Montauk Brewing Company.