A San Diego-based maker of cannabis-infused, nonalcoholic and traditional beer lines is acquiring Auburn Hills-based Rochester Mills Production Brewery.
Two Roots Brewing Co., a licensed trademark of California-based portfolio management company Lighthouse Strategies LLC, is purchasing the company, according to a Tuesday news release.
The deal includes the Auburn Hills-based production facility and taproom, David Youngman, the facility’s director of marketing communications, told Crain’s.
Rochester Mills Beer Co., an unaffiliated brewpub in downtown Rochester, is not part of the deal and will continue to operate as a independent business with separate ownership, Youngman said.
Senior management at RMPB will remain intact following the sale, and as production increases, it will modify staff levels to meet demand, Youngman said.
Lighthouse Strategies declined to disclose details of the transaction, which is expected to close within the next 90 days.
The acquisition will double production of Two Roots’ traditional and nonalcoholic beers by tapping into Rochester Mills’ 60,000-barrels-per-year capacity, Michael Hayford, Lighthouse CEO and managing member at Two Roots, said in an emailed statement.
The nearly 50,000-square-foot production facility in Auburn Hills produces 50 barrels per batch at a time, according to Youngman.
RMPB’s location is “key for access and distribution to the Midwest, East Coast and Canadian markets,” Hayford said in the release.
Two Roots sells traditional, nonalcoholic and cannabis-infused beers, including lager, IPA and wheat styles, in California and Nevada, according to its website.
For RMPB, the deal presents an opportunity to introduce new products and expand into new geographic regions, Youngman said Tuesday.
Founded in 2012, RMPB’s core products include the signature Milkshake Stout, Rochester Red Ale, Pine Knob Pilsner, which can be found at 1,000 taps at bars and restaurants in Michigan, northern Ohio, Indiana, Europe and Canada, the release said.
“We have no immediate plans to make a