Curaleaf Holdings, the “world’s largest cannabis retailer”, has agreed to buy EMMAC Life Sciences Group, Europe’s largest independent cannabis company and thus enter the European Cannabis Market in anticipation of a more liberal approach to the drug on the continent.
It is reported that Curaleaf, the leading US provider of consumer products in cannabis, has bought EMMAC for a base consideration of approximately $285m.
However, the deal includes a further $57m depending on performance, meaning that the total sum could reach up to $342m.
The proposed transaction is expected to close early in the second quarter of 2021, subject to customary closing conditions and regulatory approval.
Boris Jordan, Curaleaf Executive Chairman, said: “The consumer and political liberalisation trends around cannabis that are sweeping the US are also increasingly taking hold in Europe.
“Curaleaf will seek to leverage our branded cannabis consumer packaged goods strategy across Europe, a market which provides for cross-border cannabis distribution.
“The European cannabis market has the potential to exceed the US cannabis market over the long-term and will help fuel our growth for years to come.”
The acquisition is not only significant to the European sector but also to the global cannabis market. Financial Times reports that Curaeleaf has been named the world’s largest cannabis provider by sales with $653m in revenues in 2020.
It currently operates in 23 US states with 101 dispensaries, 23 cultivation sites and over 30 processing sites, and employs over 3,800 team members across the United States.
Antonio Costanzo, Chief Executive Officer of EMMAC, said: “Curaleaf’s acquisition of EMMAC is not only a significant milestone for EMMAC, but for the European cannabis market as a whole.
“As part of Curaleaf, a well-capitalised leader of the US cannabis market, EMMAC is poised to exploit the rapid pace of growth of the European market, driven by regulatory change and the increasing demand for access to premium quality cannabis products.
“The combination of Curaleaf and EMMAC creates a global platform to address these large new opportunities across Europe.
“With EMMAC’s science-led approach, wealth of local market experience, as well as our network of supply and distribution partnerships throughout Europe, we are now uniquely positioned to reinforce our place as one of Europe’s leaders in the production and supply of medical cannabis, wellness CBD, hemp and other derivative products.”