(Reuters) — Anheuser-Busch InBev (ABI.BR) said it would buy Los Angeles-based Golden Road Brewing as the world’s largest brewer looks to expand its presence in the fast-growing craft brewing market.
Golden Road, whose brands include the popular India pale ales, Point the Way IPA and Wolf Among Weeds IPA, as well as Golden Road Hefeweizen, operates a brewery and pub in Los Angeles.
Financial terms of the deal were not disclosed. The transaction is expected to close by the end of this year. (bit.ly/1KvlonI)
Deals in the craft brewing sector have increased as consumers increasingly choose craft beers and companies seek to capture the frothy valuations that have accompanied the industry’s boom.
Barrel volumes in the $19.6 billion craft beer industry rose 18 percent in 2014, according to the Brewers Association.
Earlier this month, Dutch brewer Heineken NV (HEIN.AS) bought a 50 percent stake in U.S.-based beer maker Lagunitas Brewing Co to expand into the craft beer industry.
California craft brewery Firestone Walker Brewing Co said earlier this year that it would merge with Flemish family-owned brewery Duvel Moortgat.
Golden Road will join AB InBev’s high-end portfolio that includes Goose Island Beer Co, Blue Point Brewing, 10 Barrel Brewing and Elysian Brewing.