Cannabis Edibles Company Expands in Oakland
With this $160 million merger, Acreage Holdings hopes to be "the Procter & Gamble of cannabis."
A major cannabis-based food and drink manufacturer and distributor has just signed a $160 million deal involving Oakland.
Through acquiring the Portland, Oregon-based cannabis edibles company Form Factory, Acreage Holdings is acquiring grow/processing licenses and operations in Oakland as well as in Los Angeles and Portland.
This deal makes New York City-based Acreage — which operates in nineteen states — the first national cannabis comsumer-packaged goods (CPG, in industry terms) company.
"Creating a wide range of products that meet the diversified tastes of consumers and owning the national manufacturing and distribution platform to ensure their consistent and predictable delivery on a national basis is a key to long-term success and value creation in the cannabis industry," said Acreage's chief executive officer Kevin Murphy.
"With this acquisition, we are now positioned to be both the first and only national cannabis CPG company and distribution platform in the US cannabis industry. The combination of the largest US operational footprint, combined with the unique food and beverage manufacturing capabilities of Form Factory, sets us on a direct path to become the Procter & Gamble of cannabis," Murphy said in a press release.
The deal will enable Acreage to develop, produce, and distribute its own family of cannabis-based brands.
"We are thrilled to be joining the Acreage family," said Form Factory CEO Tony Bash.
"The merger with Acreage represents the fulfillment of the vision we had when we founded Form Factory. With Acreage, our mission to create the largest supplier of trusted cannabis products in the world will accelerate, providing all people with access to the benefits of cannabis."