Cronos Group Inc. announces its acquisition of CanAdelaar B.V., Europe's largest adult-use cannabis company, for an up-front cash consideration of US$67.0 million.
The acquisition will give Cronos a significant market share in Europe's largest adult-use cannabis market and enable a borderless product strategy.
This strategic move will leverage Cronos' investments in genetics, research and development, and product development.
Financially Compelling Acquisition
The up-front consideration of US$67.0 million represents approximately 1.4x CanAdelaar's last twelve months (LTM) revenue and 2.4x LTM EBITDA.
Market Leadership in Europe
CanAdelaar has rapidly become a market leader in Europe's largest adult-use cannabis market, positioning it well for further growth and expansion.
Strategic European Expansion
The acquisition establishes a strategic footprint for Cronos in Europe, reflecting the company's focus on international growth and market diversification.
- The acquisition of CanAdelaar allows Cronos to tap into the deep cannabis heritage of the Netherlands and benefit from the well-established adult-use cannabis market.
- By acquiring CanAdelaar, Cronos gains access to a substantial cultivation facility and a diverse portfolio of cannabis products, enhancing its presence and offerings in the European market.
Cronos' acquisition of CanAdelaar marks a significant milestone in the company's expansion strategy, providing a strong foundation for growth and market leadership in Europe's thriving cannabis industry.