Tilray Brands, Inc ( TLRY ). announced on Tuesday that it has completed the previously announced acquisition of craft breweries Hop Valley Brewing Company,Terrapin Beer Co., and Revolver Brewing, from Molson Coors Beverage Company ( TAP/A ) .

Why It Matters

The acquisition bolsters Tilray’s leadership position in the U.S. craft beer market as the 5th largest craft brewer in the country and the top craft brewer in the Pacific Northwest and Georgia. Tilray is based in Canada.

This also strengthens the company's presence in Texas – the second largest beer consumption state – and expands Tilray's craft beer portfolio across key beer markets, adding 30% new beer-buying accounts.

“Tilray Brands is crafting a new future for brands in the craft beer industry,” said Irwin D. Simon, chairman and CEO of Tilray Brands ( TLRY ). "This strategic acquisition creates additional growth opportunities for our global beverage business, which reinforces our commitment to enhancing shareholder value."

Known for brands like SweetWater Brewing and Montauk Brewing Company, Tilray earlier said it expects a 30% growth in its beer business from this acquisition.

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What's Next

"Our plan is to drive growth and maximize the potential of these brands to their fullest capacity, while maintaining our dedication to delivering high-quality products and meeting the evolving needs of our consumers," Simon added.

For Tilray, this acquisition is set to increase their beer production to 15 million cases annually. Ty Gilmore, president of Tilray Beverages in North America said he was looking forward to bringing new team members and distributors on board.

According to Michelle St. Jacques, the company's chief commercial officer, with the move Molson Coors ( TAP/A ) seeks to redefine its business strategy with this deal. "This deal lets us focus our efforts on projects that will significantly grow our top-tier U.S. beer and other beverage lines."

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TLRY Price Action

Tilray's shares traded 1.4620% lower at $1.685 per share at the time of writing on Tuesday morning.