Tilray Brands, Inc. (TLRY  ), a cannabis and consumer packaged goods company, announced it has entered into a definitive agreement to acquire eight beer and beverage brands from Anheuser-Busch (BUD  ). The acquisition places Tilray Brands as the 5th largest craft beer business in the U.S., up from 9th.

In view of Bud Light's recent controversy, parent company Anheuser-Busch seems to be delighted with the new situation. Bud Light sparked an anti-trans backlash when it announced its collaboration with trans activist Dylan Mulvaney.

The hoopla surrounding Bud Light impacted sales of the normally top-selling beer, putting pressure on the parent company's shares.

"Tilray Brands reached out to us early this year with interest in purchasing these brands and breweries, and since then, we've had many positive conversations that led to today's announcement," said Andy Thomas, president, The High End at Anheuser-Busch. "The talented people behind these brands and breweries, along with our significant investments in them over the years, have positioned them for a bright future with Tilray Brands. We are committed to working with Tilray Brands over the coming months to ensure this is a smooth transition for the people who are working every day to get these amazing beers and beverages to consumers across the U.S."

Meanwhile, Tilray is pleased to grow its U.S. alcohol beverage segment.

"Today's announcement both solidifies our national leadership position and share in the U.S. craft brewing market and marks a major step forward in our diversification strategy. We are excited to work with the teams behind these iconic brands that command great consumer loyalty and have a history of delivering strong award-winning products with tremendous growth opportunities," said Tilray chairman and CEO Irwin D. Simon. "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."

The Eight Companies

Upon satisfaction of customary closing conditions, Tilray will acquire Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy.

Tilray Brands also owns Breckenridge Distillery, the award-winning spirits brand and the World's Best Blended Whisky, and Happy Flower CBD sparkling non-alcoholic cocktails.

The transaction includes current employees, breweries and brewpubs associated with these brands. The purchase price will be paid in all cash and the transaction is expected to close in 2023.