Kirin Holdings-owned beverages firm Lion has agreed to inject AUS$220 million into Little World Beverages to take full ownership of the Australian brewer.

Lion already has a 36% stake in Fremantle-based Little World, which makes craft beer brand Little Creatures.

Lion values Little World Beverages at AUS$386 million and an offer of AUS$5.30 per share has been recommended to shareholders. The deal is expected to close in October.

“Lion has a long history of supporting the Little World Beverages business and we believe there is now a fantastic opportunity through Lion’s scale distribution system to get these great brands to more beer lovers, while respecting the craft brewing ethos of the Little World Beverages brands, breweries and hospitality venues," Rob Murray, Lion’s chief executive.

Last week, Lion picked up the Australian brewing rights for Diageo-owned Guinness and Kilkenny cream ale from SAB Miller-owned Foster’s.