Evidently M&A activity is still occurring in the cannabis sector, with Cronos Group (TSX: CRON) this morning announcing that it will be acquiring one of Europe’s largest adult-use cannabis companies.
The company has entered into an arrangement to acquire CanAdelaar B.V., which is the largest operator under the Netherland’s adult-use cannabis pilot program. That pilot program, which commenced in April, is set to run for an initial four year period, with the government having an option to extend it by a further 18 months.
CanAdelaar currently operates a 540,000 square foot facility in the country, with operations including greenhouse cultivation, processing, production and packaging of all products. Current production totals 20,000 kilograms annually of product, with revenues hitting US$47.3 million for the 12 months ended September 30 and EBITDA of US$28.2 million.
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“Our acquisition of CanAdelaar is a financially compelling and highly strategic transaction that will establish a strategic footprint in Europe and enable us to leverage our investments in borderless products,” commented Mike Gorenstein, CEO of Cronos Group.
Under the terms of the transaction, Cronos is set to acquire CanAdelaar for an upfront cash payment of US$67.0 million, with contingent consideration equal to 0.5x of CanAdelaar’s normalized EBITDA in 2026 and 2027 payable in cash.
The transaction is currently expected to close in early 2026.
Cronos Group last traded at $3.44 on the TSX.
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