The competition just got stiffer among leading licensed producers vying for a top spot in the adult-use cannabis market in Canada.
HEXO Corp., an Ottawa, Ontario-headquartered consumer packaging goods cannabis company, announced May 28 its definitive agreement to acquire Redecan, Canada’s largest privately owned licensed producer. HEXO promoted the C$925-million deal as one that will help propel the company to its goal of being the No. 1 licensed producer by market share in Canada.
The acquisition comes on the heels of two other major deals by HEXO this year, including all-share acquisitions of Zenabis Global Inc. to the tune of $235 million in February and 48North Cannabis Corp. for $50 million earlier this month.
Courtesy of HEXO | hexocorp.com
Sébastien St-Louis, HEXO Corp. CEO
Founded in 2013, HEXO’s $925-million acquisition of Redecan will be its largest deal yet, CEO Sébastien St-Louis told Cannabis Business Times.
“Well, I’ve never been afraid of price tags,” he said. “What I look for is what’s the fundamental value. [Redecan] had the best growth in the whole industry. So, 169 percent growth year-over-year. They’re the most profitable licensed producer in the industry. And there was a beautiful product overlap. So, from that perspective, it was a hard opportunity to