Good Drinks Australia, an independent Australian brewer, has announced the acquisition of Victorian-based brewery Stomping Ground for A$11.5 million ($7.7 million).
According to sources, the transaction will be closed for A$7 million ($4.7 million) in 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 A$1.5 million ($1 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.
“We’re excited about Stomping Ground joining the Good Drinks family and I know we can achieve more being on the same team”, said John Hoedemaker, managing director of Good Drinks Australia. “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”.
The transaction is expected to be completed by Q2 of financial year 2022.