M&A Heats Up: Kiva Sales & Service and Petalfast Sign LOI to Combine Operations

LOS ANGELES- Kiva Sales & Service (KSS) has signed a letter of intent to combine with Petalfast, marking another consolidation move in California’s Cannabis distribution and sales infrastructure.

The proposed transaction would bring together two established operators across sales, distribution, and retail engagement, with combined operations spanning California and Arizona. The companies also indicated longer-term expansion plans into emerging East Coast markets, including New York and New Jersey.

According to the announcement, both organizations’ sales teams will remain in place, with the combined business expected to operate through category-based divisions. The structure is intended to maintain existing brand and retail relationships while allowing for more specialized sales strategies.

The deal also introduces a tiered service model. In addition to KSS’s existing full-service offering, the combined company plans to roll out KSS Lite, a lower-cost distribution option designed for brands that manage their own sales but require logistics and retail access.

Technology is expected to play a larger role in the combined platform. KSS’s digital ordering marketplace, KSS Live, will continue to operate as a central component, providing brands and retailers with a direct ordering interface alongside traditional field sales.

Leadership changes are also outlined in the agreement. Arun Kurichety is expected to serve as acting CEO of the combined organization following completion of the transaction. Scott Palmer will transition to a board leadership role.

The transaction remains subject to completion of definitive agreements and customary closing conditions.

The move reflects ongoing consolidation across Cannabis distribution, particularly in California, where operators continue to face pricing pressure, fragmented retail networks, and competition from the unlicensed market.