Cannabis MSO Green Thumb Seeks Merger with Sam Adams Brewer
CEO of cannabis multistate operator Green Thumb Industries, Ben Kovler.
The CEO of cannabis multistate operator Green Thumb Industries is pitching a merger between his company and Boston Beer Co., the manufacturer of the Samuel Adams family of brews. Green Thumb CEO Ben Kovler proposed the merger idea in a letter dated June 2 to Boston Beer chairman and founder Jim Koch, saying the move would benefit both companies. On June 4 Kovler shared the letter on the social media platform X, saying in his post that Green Thumb is a “better buyer” for the company compared to other proposals.
Boston Beer Co. has a market capitalization of about $3.6 billion, while Green Thumb is worth about $2.8 billion. Kovler wrote in his letter to Koch, who has 100% of the voting rights of the company’s Class B stock, that the two companies were a good fit, noting that the cannabis industry continues to grow as more states legalize weed. Alcohol consumption is declining, however, with young adults drinking less than previous generations.
“As we look at a future where this consumer trend continues to gain traction, I believe we have to be proactive versus reactive,” Kovler wrote in the letter.
Proposed Merger Offers New Opportunities for Both Companies
In his letter to Koch, Kovler said that the proposed merger between Green Thumb and Boston Beer would allow both companies to launch new products, mentioning possibilities such as pre-rolls, beverages, edibles, vapes, concentrates and topicals. Stock market analyst Aaron Grey, CEO of Alliance Global Partners, said on Monday that the proposed merger would allow Boston Beer Co. to enter new markets as alcohol sales continue to decline.
“The merger could provide exposure [for Boston Beer] to one of the leading companies in the growing cannabis space,” said Grey, according to a report from Morningstar.
He added that a Green Thumb merger with Boston Beer would give the cannabis company a listing on the New York Stock Exchange, making its shares available to a wider base of shareholders. The firm’s stock is currently listed on the less popular Canadian Securities Exchange and can be acquired through over-the-counter transactions.
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