Business
Village Farms International Acquires 100% of Balanced Health Botanicals, a Profitable Leader in the US CBD Category, Providing an Additional Pathway to High-THC Cannabis Market in the US
– Acquisition Expected to be Immediately Accretive to Net Income – VANCOUVER, BC, Aug. 16, 2021 /PRNewswire/ - Village Farms International, Inc. ("Village
About this update from Village Farms International, Inc.
[{"type":"text","content":"– Acquisition Expected to be Immediately Accretive to Net Income –\n VANCOUVER, BC, Aug. 16, 2021 /PRNewswire/ - Village Farms International, Inc. (\"Village Farms\" or the \"Company\") (NASDAQ: VFF) (TSX: VFF) today announced that it has acquired 100% interest of privately-held, Colorado-based CBD-platform Balanced Health Botanicals (\"Balanced Health\") in a transaction valued at US$75 million, effective today (\"Closing Date\"). Balanced Health owns and operates one of the largest brands in the hemp-derived cannabidiol (CBD) market in the United States, providing Village Farms with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, as well as the broader consumer packaged goods (CPG) wellness arena. Balanced Health is a profitable business and the acquisition is expected to be immediately accretive to net income.\nBalanced Health develops and sells high-quality, CBD-based health and wellness products. With an overriding focus on quality and compliance, Balanced Health has established a diverse portfolio of CBD and other cannabinoid products, including ingestible, edible and topical applications that are distributed via e-commerce and brick and mortar retail channels. Its e-commerce platform, CBDistillery™ (www.theCBDistillery.com), is a top-five US CBD brand1 and top-ranked web site within the CBD category, with more than 30,000 orders monthly and a significant repeat customer base. Through its long-term partnerships, Balanced Health has control of the entire supply chain from seed-to-shelf, seamless sourcing, manufacturing, and sale of high-quality end products across a wide variety of forms and uses. \nHighlights of the Acquisition\nProvides immediate access to the US retail CBD market, estimated to grow to US$16 billion by 20252 (from US$4.7 billion in 20202) through a well-established, profitable business, with top brand awareness, an established e-commerce platform (CBDistillery™), established retail channels and a growing customer base; Adds an experienced team and product categories in the US adjacent to Village Farms' consumer products portfolio with expansion potential across all cannabinoid products as permissible under currently evolving legislation, including an additional potential pathway to the US high-THC cannabis market; Immediately accretive to ne...