Curaleaf Announces Acquisition Opening The Door For European Expansion
Curaleaf has announced the acquisition of Canadian cannabis company Northern Green Canada (NGC) as it eyes further expansion into Europe and Australasia.
The deal, which is expected to close in the second quarter of this year, has been billed as a ‘significant milestone in Curaleaf’s expansion strategy’.
NGC is one of the few Canadian cannabis producers to hold EU GMP accreditation, enabling it to sell its products throughout Europe.
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’.
Furthermore, NGC’s facility can be easily built out to accommodate additional grow rooms and capacity, depending on demand.
Germany has long been in Curaleaf’s sights, with it stating last year that it expected to begin selling in the market, which could soon significantly expand its cannabis industry, by the end of this year.
The news comes just days after its international arm announced plans to expand into the Czech Republic, a new market for the company, through a new supply agreement with Astrasana Pharma s.r.o.
Boris Jordan, executive chairman of Curaleaf, said: “The opportunity in Germany alone cannot be understated, and we continue to prepare strategically for that moment and beyond. We are committed to delivering the highest quality flower in every market we operate, and we are thrilled to welcome the NGC team to the Curaleaf International family.”
Juan Martinez, head of Curaleaf International, said, “With the addition of NGC’s indoor non-irradiated flower, coupled with existing production from Portugal that can be quintupled as demand dictates, Curaleaf will have ample high quality GMP supply and future expansion capacity to meet growing market needs. We anticipate other EU countries to follow Germany’s lead in advancing their medical cannabis programs to increase patient access.”
Read more to understand why Germany’s cannabis liberalisation efforts are not yet a done deal.
