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Acreage Closes Acquisition of Form Factory in Deal Valued at USD 160m.


23 April 2019 - New York, US-based Acreage Holdings, Inc. (CSE: ACRG.U) has closed the acquisition of Oregon, US-based multi-state manufacturer and distributor of cannabis-based edibles and beverages Form Factory, Inc. in an all-stock transaction valued at USD 160m, the company said.

Acreage will issue approximately 6.4m subordinate voting shares to form Factory shareholders at a deemed price of USD 25 per share.

Combined, the transaction increases Acreage's number of states with operating licenses to 19 from 18.

The transaction brings form Factory's expertise as a one-stop-shop for developing, manufacturing, and distributing cannabis products of any form factor to Acreage's 19-state footprint of growing, manufacturing and distributing cannabis-based consumer and medical products.

It sets the stage for Acreage to become the first national cannabis consumer packaged goods company, capable of creating and distributing predictable and scalable proprietary brands, nationally, delivering those capabilities on a contract basis to other cannabis brands, and offering a turnkey cannabis industry solution to traditional non-cannabis CPG companies.

Acreage Holdings is a vertically integrated, multi-state owner of cannabis licenses and assets in US states with respect to number of states with operating licenses.

Form Factory is a cannabis manufacturer, co-packer and distributor with operations in Oregon and Washington, and plans to expand in California.

Country: USA

Sector: Food/Beverages/Tobacco

Target: Form Factory, Inc

Buyer: Acreage Holdings, Inc


Deal size in USD: 160m

Type: Corporate Acquisition

Financing: Stock

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:Apr 23, 2019
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