Good Drinks Australia announced the acquisition of Victorian-based brewery Stomping Ground for $11.5 million.
According to sources, the transaction will be closed for $7 million cash, 4.5 million Good Drinks Australia ordinary shares, and a trailing 5-year performance component.
With this agreement, Stomping Ground is expected to contribute $1.5 million to Good Drinks Australia’s earnings in its first year and achieve a growing annual volume of 4 million litres by financial year 2027, to develop national brands in key markets and increase the earnings-per-share value for Good Drinks Australia’s Shareholders.
“We’re excited about Stomping Ground joining the Good Drinks family and I know we can achieve more being on the same team. With a shared value of continuing to grow independent beer across the country, our combined skills, experience, and resources will help fast-track our goals. We’re looking forward to working with Steve, Guy, and Justin to help super-charge Stomping Ground and see it achieve its goal of becoming Victoria’s leading independent beer brand”, said John Hoedemaker, managing director of Good Drinks Australia.
The transaction is expected to be completed by Q2 of financial year 2022.