M&A Deal Summary

HEXO Acquires Newstrike Brands

On March 13, 2019, HEXO acquired medical products company Newstrike Brands for 263M CAD

Acquisition Highlights
  • This is HEXO’s 1st transaction in the Medical Products sector.
  • This is HEXO’s 2nd largest (disclosed) transaction.
  • This is HEXO’s 1st transaction in Canada.
  • This is HEXO’s 1st transaction in Ontario.

M&A Deal Summary
Date 2019-03-13
Target Newstrike Brands
Sector Medical Products
Buyer(s) HEXO
Deal Type Add-on Acquisition
Deal Value 263M CAD
Advisor(s) RBC Capital Markets (Financial)
Stikeman Elliott
Osler (Legal)

Target

Newstrike Brands

Oakville, Ontario, Canada
Newstrike Brands Ltd. is a producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike is focused on growth; growing top quality cannabis, market share for its Up brand and shareholder value.

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Buyer(S) 1

Buyer

HEXO

Gatineau, Quebec, Canada
Category Company
Founded 2013
Sector Medical Products
Revenue 191M USD (2022)
DESCRIPTION

HEXO is an award-winning consumer packaged goods cannabis company that creates and distributes prize-winning products to serve the global cannabis market. Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates with 1.8 million sq. ft of facilities in Ontario and Quebec and a foothold in Greece to establish a Eurozone processing, production and distribution centre. HEXO was founded in 2013 and is based in Gatineau, Canada.

DEAL STATS #
Overall 1 of 4
Sector (Medical Products) 1 of 1
Type (Add-on Acquisition) 1 of 4
State (Ontario) 1 of 3
Country (Canada) 1 of 4
Year (2019) 1 of 1
Size (of disclosed) 2 of 3
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-16 Zenabis Global

Vancouver, British Columbia, Canada

Zenabis Global is a North American supplier of propagated agricultural plants growing and distributing vegetable, flower, berry and other plant seedlings. From its 34 acre production facility in Langley, BC, Zenabis supplies growers in Canada, the United States and Mexico. Zenabis Global is based in Vancouver, British Columbia.

Buy $235M
Mergr

Product

Company

Legal