LONDON â€" The Irish beverage company C&C Group agreed on Tuesday to buy Vermont Hard Cider Company, the makers of Woodchuck Cider, for $305 million.
The deal is the latest in a flurry of recent acquisitions in the beverage industry, as alcohol giants like AnheuserBusch-InBev and Heineken search for new growth markets.
Under the terms of the deal announced on Tuesday, C&C, based in Dublin, will acquire Vermont Hard Cider, whose brands include Woodchuck Cider which is the largest cider brand in the United States.
The deal will combine C&C's own cider business, including brands like Magners, Bulmers and Gaymers, with those of Vermont Hard Cider, as the Irish company looks to expand its business in the U.S.
“This transaction transforms our international cider business and accelerates our growth prospects,†C&C's chief executive, Stephen Glancey, said in a statement.
In morning trading in London, shares in C&C rose 6 percent.
Vermont Ha rd Cider, based in Middlebury, Vt., reported a pretax profit of $10 million last year, which is expected to increase 50 percent, to around $15 million, in 2012, according to a company statement.
The beverage industry is going through a new round of consolidation. Earlier this year, AnheuserBusch-InBev agreed to buy the share of Grupo Modelo that it did not already own for $20.1 billion. The Dutch beer giant Heineken also recently received shareholder approval to buy the Singaporean-based company Asia Pacific Breweries for around $4.6 billion.
C&C said it would fund the deal for Vermont Hard Cider through existing cash reserves and bank loan facilities.
The deal is expected to close early next year.
