Gage Roads was recently appointed official beer and cider partner of Cricket Victoria.

( ) has executed a binding agreement to acquire Matso’s Broome Brewing for $13.25 million plus a deferred consideration.

The company is undertaking a $10 million placement to institutional shareholders and a $2 million share purchase plan to fund the transaction.

Gage Roads is a unique craft brewer, with brands including Atomic Pale Ale, Sleeping Giant IPA, Little Dove New World Pale Ale, Narrow Neck Session Ale and many more.

The consideration for the acquisition of Matso’s will include up to an additional $2.8 million in cash or scrip subject to the achievement of performance criteria over a 3-year period.

Matso’s Broome Brewing

Matso’s is an iconic West Australian flavoured beer brand owned by the Peirson-Jones family in Broome.

The brand is best known for its popular ginger and mango beer varieties.

Matso’s ginger beer has the largest market share of the alcoholic ginger beer category in Australia and is outperforming category growth of 13% per annum.

Earnings growth expected

The acquisition represents a major expansion of the Gage Roads brand portfolio.

The additional Matso’s brands at current volumes and strong profit margins provide Gage Roads the opportunity to leverage its existing national sales, marketing and distribution capability and deliver sustained earnings growth.

Gage Roads’ securities will remain in trading halt pending news in relation to the completion of the institutional placement.