Canopy Growth Finalizes Acquisition Agreement With Storz & Bickel Gmbh & Co. KG
Storz & Bickel GmbH & Co. KG is officially a Canopy Growth Corporation (NYSE: CGC) subsidiary. Canopy growth closed an acquisition deal for €145 million in an all-cash settlement. Through the just-completed merger, Canopy Growth will own all Storz & Bickel subsidiaries together with its IP.
The acquisition is one of the largest to go down in the cannabis sector this year. It is rare but not impossible for industry giants to join forces and conquer the market together. Storz and Bickel has an impressive history in the vaporizer design and manufacturing segment. The company is typically the trailblazer in the vaporizer space and is credited for products like the Volcano® Medic and the Mighty® Medic.
Storz & Bickel has been operational for over two decades designing industry-grade medical vaporizers. The company is a proud owner of over 17 vaporizer-related patents. Due to its consistency and compliance in producing quality medical equipment, the company was granted an ISO 13485 certification in 2019. The German-based company markets its products across 50 countries globally and generally business has been good throughout the period.
According to the agreement, Canopy Growth will retain S & B founders Markus Storz and Jürgen Bickel to help develop and market the company’s products and offer their expertise to Canopy Growth as well.
S & B existed about the acquisition
Speaking about the acquisition, the two co-founders said that, “Joining Canopy will enable S&B to take the next significant development step forward. Access to Canopy Growth’s extensive portfolio of test laboratories as well as pharmaceutical and medical-scientific know-how opens up entirely new product development opportunities.”
According to Canopy Growth’s Chairman and CEO, Bruce Linton, the acquisition will help his company thrive in the high-margin vaporizing category globally. With access to S & B’s patents, Canopy Growth can now spice up their Vaporizer designs. Besides helping out with Canopy Growth’s vaporizer designs, S & B will play an important role in strengthening Canopy Growth’s German presence.
Canopy Growth already has existing import and export operations in Germany headquartered in Frankfurt.
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