Canadian cannabis firm Aphria (NYSE: APHA) has acquired CC Pharma GmbH, which distributes medical cannabis and pharmaceutical products to more than 13,000 pharmacies in Germany as well as throughout Europe.
As part of the deal, Aphria paid €18.92 million in cash to acquire CC Pharma with an earn-out multiple on future EBITDA of up to another €23.5 million, if certain performance milestones are met.
CC Pharma imports and distributes EU-pharmaceuticals for the German market. The company has over 230 employees and offices in Germany, Denmark, Poland and the Czech Republic. It holds 318 active German national pharmaceutical licenses and 692 active EU pharmaceutical licenses, and also operates a production, repackaging and labeling facility at its headquarters in Densborn, Germany.
During 2018, CC Pharma made revenues of around €262 million, with EBITDA of approximately €10.5 million.
Aphria Sees Opportunities in Germany Cannabis Market
Aphria is strengthening its operations and infrastructure in Germany to well position itself for future opportunities.
“As one of the most promising medical cannabis markets in the world, Germany is a top strategic priority for Aphria. With today’s acquisition of CC Pharma, Aphria is creating a German and ultimately pan-European platform that brings together demand, supply and distribution.” Aphria CEO Vic Neufeld said in a press statement.
As part of its efforts to become a strong player in the German cannabis market, Aphria and its subsidiaries announced strategic milestones, including a supply agreement to provide CC Pharma with approximately 1,200 kilograms of medical cannabis products exported from Canada and Denmark to Germany. In addition, as part of its plans to build and operate pain treatment centers throughout Germany, the company made an investment in Berlin-based Schöneberg Hospital last year.
Furthermore, construction is underway on a state-of-the-art, GMP certified cannabis vaults (5,000 kg storage capacity) in Bad Bramstedt, Germany. Aphria expects to complete the Bad Bramstedt in spring 2019 and started construction of a research and development indoor growing facility in Neumünster, Germany, in preparation for in-country cultivation.