Florida's dietary supplement trailblazer, Safety Shot Inc., is set to expand its footprint in the plant-based beverage market by acquiring Yerbae Brands Corp., known for its yerba mate-infused energy drinks. The all-stock deal announced last Wednesday by Safety Shot (Nasdaq: SHOT) involves the exchange of 20 million common shares, pegging the equity value at $15.2 million and the enterprise value at $19.7 million, as reported in a regulatory filing. "We believe that the transaction will provide us with access to new distribution channels, expanded marketing capabilities, and valuable synergies that will look to benefit both brands," Todd Gibson, CEO of Yerbae, said in a statement obtained by ABC15.
According to a BizJournals report, the transaction will culminate in Yerbae shareholders owning a 24.2% share of the merged entity, with the deal's closure anticipated in the year's second quarter, pending regulatory and shareholder approvals. The merger is expected to achieve "significant cost savings" and provide Safety Shot with access to Yerbae’s existing retail relationships, which include grocery stores, convenience, and specialty stores.
Safety Shot, seizing an opportunity to combine its dietary products with Yerbae's popular plant-based drinks, envisions leveraging distribution and supply chain efficiencies alongside product innovation. "We believe Yerbaé’s impressive growth and established presence in the plant-based beverage market, generating approximately $12 million in revenue in fiscal year 2023, could be instrumental in driving our potential growth," John Gulyas, chairman of Safety Shot, told BizJournals in a statement.
The culmination of this deal will also see Safety Shot relocating its headquarters to Scottsdale, while retaining and expanding Yerbae's workforce, Gibson explained via email statements to the Business Journal. Despite the shift in location, Yerbae's 11 employees, primarily based in Scottsdale, will keep their jobs, and the company's management team will remain onboard with the newly formed company, led by Safety Shot executives—Gibson will join as a member of the company's board of directors and continue in his role as Yerbae’s CEO.
Founded in 2017 by Todd Gibson and his wife, Karrie, Yerbae made its mark by infusing the caffeine-rich South American yerba mate plant into zero-calorie, zero-sugar, and gluten-free sparkling beverages. The brand has achieved considerable scale, having sold more than 31 million cans and established distribution across over 14,000 retail outlets nationwide. Yerbae's success was reflected in its public listings, first on the Toronto Stock Exchange through a reverse merger in February 2023 and then on the U.S. over-the-counter market in June 2023 under the ticker "YERBAE."
