TORONTO -- Royal Unibrew says it's buying Toronto-based Amsterdam Brewery Co. Ltd. for about $44 million.

Denmark-based Royal Unibrew says the acquisition will help its expansion in the Americas by having Amsterdam Brewery supply most of the Canadian market as well as supplementing its supplies to the United States.

The beverage conglomerate, which produces drinks under its own Royal name along with owning several brands including Faxe beer, says the localized supplier will reduce demand on its Danish facilities.

It says a localized supplier will also reduce supply chain constraints that have increased significantly in the last 18 months, along with cutting transportation costs and the company's CO2 footprint.

Founded in 1986, Amsterdam Brewery has a brew pub on Toronto's waterfront as well as a roughly 6,000-square-metre (65,000 square foot) brewery in the city's Leaside neighbourhood.

Royal Unibrew says Amsterdam has about $34 million a year in sales, and earnings of around $5 million before certain deductions.