US-based wellness and dietary supplement company, Safety Shot, has announced plans to acquire plant-based energy drink company Yerbaé Brands.
The deal will merge Safety Shot’s wellness-focused products with Yerbaé’s plant-based energy drinks, which reported $12 million in revenue in 2023. The companies aim to capitalise on the growing demand for functional beverages and position themselves for accelerated growth in the market.
Under the arrangement agreement, Safety Shot will acquire all outstanding Yerbaé shares, including those issued through the settlement of performance and restricted share units, in exchange for 20 million Safety Shot common shares.
The acquisition values Yerbaé at $15.2 million in equity and $19.7 million in enterprise value. After the transaction, Safety Shot shareholders will hold approximately 75.8% of the combined company, with Yerbaé shareholders owning 24.2%.
Founded in 2017 by Todd and Karrie Gibson, Yerbaé produces plant-based energy drinks for health-conscious consumers seeking alternatives to traditional options. Yerbaé’s products are compatible with non-GMO, keto, vegan, kosher, paleo and gluten-free diets.
John Gulyas, chairman of Safety Shot, said: “We believe that this acquisition could be a significant revenue catalyst for Safety Shot on top of an expected revenue growth rate of 50% expected in Q4, versus Q3. 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.”
Todd Gibson, CEO of Yerbaé, added: “We are thrilled to join forces with Safety Shot and leverage their expertise and resources to potentially accelerate our growth. 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.”
If the transaction is completed, Safety Shot will gain immediate access to Yerbaé’s established retail partnerships, including major grocery, convenience and speciality store channels, which could drive faster product placement and increased consumer adoption.
Following the deal’s closure, Safety Shot’s leadership team will maintain its position, while Yerbaé’s team will take on secondary management roles.
