Valens closes deal to buy US-based Green Roads
Published on June 21, 2021 by oz. staff
The Valens Company has completed its acquisition of the largest privately held CBD company in the US.
Kelowna-based Valens announced Monday it closed its deal to buy Green Roads in a cash and share transaction worth about US$40 million, plus up to an additional $20 million in if certain milestones are achieved.
The deal opens the door for direct entry into the US for the Canadian cannabis company.
“With the closing of this acquisition, Valens now has a significant presence in the largest cannabinoid market in the world, representing a monumental step in our international expansion strategy and furthering our vision of becoming a global manufacturer of cannabis consumer packaged goods,” says Tyler Robson, CEO, co-founder and chairman of Valens.
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Robson says he expects the company to expand its distribution overseas and to further disrupt the North American market with innovative cannabis products.
“The combination of Valens and Green Roads makes for an unbeatable team, diversified distribution network, and unparalleled product development and manufacturing platform, which we expect will provide us the footprint to become one of the biggest players in the global cannabis health and wellness market,” he says.
Green Roads, based in South Florida, is ranked second by market share with distribution across physical retailers and online direct-to-consumer sales. The company’s distribution network consists of more than 7,000 retail stores and a robust e-commerce and marketing platform with over 30,000 five-star reviews across all its product lines.
As well as access to the US, Valens says Green Roads products will be available to Canadian consumers later this year.
“The combination of Green Roads and Valens creates a truly global company with a clear leadership position both within the US CBD market and Canada’s domestic cannabis market,” says Dale Baker, president and CEO of Green Roads.
“With this larger platform, we look forward to launching Green Roads products in Canada in the second half of 2021 and leveraging our own manufacturing facilities to export CBD products internationally. Valens and Greens Roads have a shared ethos of keeping our customers at the heart of our strategic decision-making and offer complementary products that foster brand loyalty and drive high margins.”