Market Pulse

New Age Beverage's stock soars after announcing $85 million Morinda buyout

Shares of New Age Beverages Corp. nbev rocketed 18% in premarket trade Monday, after the Colorado-based CBC-infused beverage company announced a deal to buy Utah-based Morinda Inc. for $85 million. Under terms of the deal, New Age will pay $75 million in cash and $10 million in New Age restricted stock. At completion of the deal, which is expected in December, Morinda will be bringing $25 million in working capital and no debt. The companies expected more than $10 million in cost and revenue synergies to be achieved over the next 12 to 18 months. "Morinda adds New Age's portfolio of healthy beverages to its network to drive further growth alongside its lead brand, Tahitian Noni," said New Age Chief Executive Brent Willis. "New Age adds significant scale, and infrastructure to accelerate growth, especially of its CBD-infused beverages and Health Sciences portfolio." New Age's stock has more than tripled (up 213%) over the past three months, while the ETFMB Alternative Harvest ETF mj-0.97% has lost 12% and the S&P 500 spx-1.12% has slipped 4.9%.

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