Tilray Stock Is Trading Higher Tuesday: What's Going On?

Tilray Brands Inc TLRY shares are trading higher Tuesday after the Canadian cannabis and packaged goods company announced a deal to acquire eight beer brands from Anheuser-Busch Inbev BUD.

What Happened: Tilray entered into a definitive agreement with beer giant Anheuser-Busch to acquire eight beer and beverage brands from the company. The brands include Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy.

The all-cash deal is expected to close this year. The transaction will include current employees, breweries and brewpubs associated with the aforementioned brands. 

"In a matter of three years, Tilray has solidified its leadership position in the craft beer industry, and we fully intend to be that change agent that reinvigorates the sector," said Irwin Simon, chairman and CEO of Tilray.

"Upon federal cannabis legalization, we expect to leverage our leadership position, wide distribution network and portfolio of beloved beverage and wellness brands to include THC-based products and maximize all commercial opportunities."

Upcon closing of the deal, the brands are expected to generate craft beer pro forma revenue of $250 million and strengthen the company's distribution capabilities. 

"Tilray is fully committed to invest in and champion the future of the U.S. craft beer industry by fueling new innovation that excites and further accelerates the growth of its consumer base," Simon added. 

Check This Out: Tilray Acquires 8 Beer Brands From Struggling Bud Light Parent Anheuser-Busch: Here's What It Means For Both Companies

TLRY Price Action: TIlray shares were up 12.6% at $2.51 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Anheuser-Busch.