Curaleaf has finalised its $16m acquisition of Canadian cannabis producer Northern Green Canada (NGC), helping the company secure its foothold in ‘key European markets’.
Business of Cannabis reported last month that Curaleaf had announced plans to acquire NGC, one of the few Canadian cannabis producers to hold EU GMP accreditation, enabling it to sell its products throughout Europe.
The deal has seen Curaleaf provide an initial payment of its subordinate voting shares valued at US$16m, with an earnout set to be paid in 2025 based on NGC’s performance this year, half in cash and half in more voting shares.
“We are thrilled to welcome NGC formally to the Curaleaf family of global brands,” said Boris Jordan, Founder and Executive Chairman of Curaleaf.
“This is an incredibly important deal for our international expansion strategy, as we’ll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand.”
According to Curaleaf, to which NGC has been a longstanding key supplier, this deal will provide a ‘secure and consistent’ EU GMP flower supply, ‘ensuring a leading position’ in the German market and enabling it to maintain its leading position in the UK, while expanding its first mover advantage into Poland.
By integrating the Canadian company, Curaleaf can ‘significantly increase its European margins’, and extend its global reach to ‘Australasian markets’.
It is the latest in a string of North American cannabis operators to bolster their position in the rapidly expanding European market, spurred by Germany’s recent reform.
According to Curaleaf, emerging markets like Germany, New Zealand and Australia are expected to contribute $6.3bn in cannabis sales by 2027.
