California-based Búcha is to merge with New Age Beverages in a cash-and-equity transaction worth approximately $20m. The merged entity will lead to cost and revenue synergies of more than $7.5m.

Búcha owns the Búcha Live Kombucha brand, while the Colorado-based New Age Beverages Group manufactures natural tea and other health beverages and is valued at $50m.

The deal includes New Age Beverages’ assets and brands, including XingTea, XingEnergy, and Aspen Pure.

"The combination of New Age and Búcha creates a credible platform to compete against the traditional large beverage companies."

At the time of deal closure, an initial cash payment of $8.5m will be made to the majority stake owner of New Age Beverages, along with the issuance of common stock in Bucha, worth around $7m. The payment will be funded through a loan. This deal is scheduled to be closed on or around 30 June 2016.

The merged company will be called New Age Beverages Corporation and it will own brands such as Búcha Live Kombucha in the kombucha category, XingTea in the ready-to-drink tea category, XingEnergy in energy drinks, and Aspen Pure in the functional waters segment.

New Age Beverages will be based in Denver, Colorado. Brent David Willis will serve as the CEO.

Willis said: "The combination of New Age and Búcha creates a credible platform to compete against the traditional large beverage companies. I am excited to lead the new company together with Scott and Tom, who I have known for a long period of time.

"They are very well respected in the industry and I am confident that we will be highly complementary in what we bring to the new operation. We will have the scale and capabilities to effectively compete, and will provide a one-stop-shop for retailers with excellent growth brands that meet consumer’s needs for healthier alternatives."