Curaleaf Expands Global Reach with Acquisition of Canadian Cannabis Operator

LOS ANGELES- Curaleaf Holdings, a figure in the cannabis industry, is advancing its international presence through the acquisition of Northern Green Canada, a licensed cannabis producer that specializes in the import-export market. This move, the financial details of which remain undisclosed, marks a significant step for the New York-based multistate operator (MSO) in securing a strategic advantage within the global cannabis supply chain.

Northern Green Canada, known for its focus on international markets, reported that 95% of its sales in 2023 were outside of Canada. However, specific sales figures were not released. The company operates out of a facility in Brampton, Ontario, which boasts European Union-Good Manufacturing Practice (EU-GMP) certification, a crucial standard for exporting cannabinoids globally.

This acquisition follows closely on the heels of Curaleaf’s recent purchase of the Polish medical cannabis operator Can4Med, further extending its footprint into Germany, Poland, and the United Kingdom. Additionally, this deal lays the groundwork for Curaleaf’s entrance into the Australian and New Zealand markets, emphasizing the company’s ambition to establish itself as a globally recognized cannabis brand.

Canada continues to lead in the export of medical cannabis, with the 2022-23 fiscal year seeing a 50% increase in exported medical cannabis products valued at approximately 160 million Canadian dollars ($118 million), with Australia and Israel being the top markets.

Curaleaf has highlighted Northern Green Canada’s significant role in supplying high-THC, non-irradiated flower to the German market, a region poised for growth following legislative changes. The acquisition is not just a step towards consolidating Curaleaf’s European operations but also a strategic move to penetrate the Australasian markets.

Boris Jordan, Curaleaf’s executive chair, expressed confidence in the acquisition, noting its potential to boost the company’s position in Europe while enhancing supply chain efficiency and profit margins. “The opportunity in Germany alone cannot be understated,” Jordan remarked, underscoring the strategic importance of the acquisition.

Juan Martinez, head of Curaleaf International, commented on the complementary nature of this acquisition to Curaleaf’s existing assets in Portugal. With Northern Green Canada’s addition, Curaleaf aims to meet the increasing demand with high-quality, non-irradiated flower, leveraging its production capabilities in Portugal for future expansion.

In a related development, Curaleaf announced its decision to divest its adult-use store in Maine earlier this month, though it maintains a presence in the state through four medical cannabis outlets.

Shares of Curaleaf Holdings (CURA) are publicly traded on the Toronto Stock Exchange, reflecting the company’s standing in the financial markets and its commitment to expanding its global cannabis operations.