Canopy Growth acquires Supreme Cannabis for $435 million $CA

Canopy Growth, one of Canada's largest cannabis companies, has signed an agreement to purchase Supreme Cannabis in an all-share transaction valued at C$435 million.

The agreement follows last week's announcement of Canopy's acquisition of Ace Valley, a Toronto-based company that produces pre-rolled vapes and cannabis-infused edibles.

In the latest transaction, Canopy will acquire a host of Supreme brands, including 7Acres, Blissco and Sugar Leaf, among others.

Canopy also acquires Supreme's Ontario greenhouse facility. In a press release, Canopy noted that the 'scalable production facility» has »demonstrated its ability to produce high quality flowers at low cost«.

«As we continue to expand our portfolio of leading brands, we are excited to reach more consumers with Supreme's premium brands and high-quality products, further solidifying Canopy's market leadership,» said David Klein, CEO of Canopy, in a statement.

«Supreme's deep commitment to superior genetics, leading culture and strict quality control, combined with Canopy's leading consumer knowledge, advanced R&D and innovation capabilities, should create a powerful combination that aligns with our strategic goal of generating growth with superior products in key categories,« added David Klein.

According to Canopy, Supreme Cannabis shareholders will benefit from the CBD business and its ongoing expansion efforts in the United States.

«This transaction is a testament to the value created by all Supreme teams and will benefit all our stakeholders,» says Beena Goldenberg, President and CEO of Supreme Cannabis.

«We have succeeded in providing excellent products that have achieved strong customer loyalty, and in operating at industry-leading levels of efficiency. The combination of Supreme Cannabis and Canopy - a Canadian market leader with a foothold in the U.S. - presents a significant value-creation opportunity for both companies,» added Beena Goldenberg.