Greenlane Expands Global Footprint With European Acquisition
Greenlane is a leading seller of premium cannabis accessories
Greenlane Holdings, Inc. (Nasdaq: GNLN) (“Greenlane”), one of the largest global sellers of premium cannabis accessories, today announced it has entered into a definitive agreement to acquire Conscious Wholesale (“Conscious”), a leading European wholesaler and retailer of consumption accessories, vaporizers, and other high-quality products. The acquisition will immediately expand Greenlane’s global footprint through its complementary product portfolio, comprised of premium brands such as Firefly, Davinci, PAX and Storz & Bickel, and existing distribution channels throughout Europe. In addition, Conscious Wholesale operates a retail shop in the Netherlands as well as e-commerce websites, including Vaposhop.com.
Conscious operates a leading wholesale, e-commerce and retail platform across Europe. Conscious distributes a broad selection of products to approximately 700 points of distribution across more than 20 European markets. The expanded geographic presence and distribution footprint is expected to provide product and sales synergies with Greenlane’s expansive portfolio of house brands and third-party products. Conscious employs over 30 employees, is led by an established management team that will remain with the business, and boasts a culture founded in quality and compliance that is consistent with the Greenlane standard.
In addition to its acquisition of Conscious, Greenlane has also entered into an agreement with UK-based Access Fulfillment for logistics services, further enhancing Greenlane’s ability to deliver products to customers throughout Europe.
“The addition of the Conscious Wholesale platform, Dutch retail shop Azarius, and e-commerce site Vaposhop.com immediately provides us with a strong and established foothold in Europe and creates opportunities to expand the distribution of both our third-party suppliers and house brands,” said Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer. “These businesses are highly synergistic with our existing distribution, retail and e-commerce capabilities, and are led by a talented team with a strong culture that is an excellent fit with Greenlane. We look forward to driving growth, further broadening our geographic presence and delivering value for our shareholders.”
LoCascio continued, “Our partnership with Access Fulfillment is expected to significantly expand our access to the European market and, coupled with the Conscious Wholesale acquisition, accelerates our global growth and reach.”
“Our entire team is excited to join Greenlane to significantly expand our combined global reach and market leadership,” said Sanne van Oosten, Conscious Wholesale’s Co-Founder and Director. “We have built a platform in Europe that, in connection with Greenlane’s broad product portfolio, is well positioned to drive growth across all of our markets.”
The acquisitions are expected to be immediately accretive to annualized net earnings following the close of the transaction. On a consolidated basis, the acquired businesses generated USD $11.9 million of revenue during calendar 2018.
Closing of the transaction is subject to customary conditions. Total consideration for the transaction is up to EUR 7.5 million, with EUR 4.5 million paid up front, consisting of EUR 3.0 million in cash and EUR 1.5 million in stock. The agreement includes a provision for potential additional consideration of up to EUR 3.0 million payable in cash and stock upon on the achievement of sales growth and gross margin targets.
