Curaleaf To Enter Europe After Closing $310M EMMAC Acquisition, $130M Financing

Curaleaf Holdings, Inc. CURA CURLF has purchased EMMAC Life Sciences

The Wakefield, Massachusetts-based company said Wednesday it has completed the previously announced acquisition of one of the largest cannabis companies in Europe.

Transaction Details: Under the deal, Curaleaf agreed to pay $50 million in cash and 17.5 million in stock -- worth roughly $260 million. The company plans to pay additional consideration to EMMAC stakeholders upon the achievement of particular performance milestones.

To boost its European footprint further, while holding its EMMAC investment, Curaleaf has created Curaleaf International Holdings Limited on the island of Guernsey.

In addition, the company has teamed up with an institutional investor to secure $130 million in financing for further expansion of Curaleaf International. The new investment brings Curaleaf International to a $413 million post-money valuation, with $80 million in cash.

The investor, which remained undisclosed, will have a 31.5% equity stake in Curaleaf International in return.

Why It Matters: Curaleaf Executive Chairman Boris Jordan called the acquisition "a transformational launching point for our entrance into the European cannabis market."

"With our single strategic institutional investor, we have set a strong foundation for Curaleaf International's future growth trajectory," he added.

The company's new international platform consists of cultivation, EU GMP-certified processing, distribution, and research and development operations spread across the United Kingdom, Germany, Italy, Spain, and Portugal.

What's Next: Curaleaf International intends to boost its cultivation capacity to over 10 tons per year by 2022.

"With the ability to operate our new European business across country borders, with one or two cultivation sites and one manufacturing center to serve the entire region in most cases, combined with our ability to leverage the strength of our consumer packaged goods strategies and innovations from our U.S. operations, we see enormously positive implications for our ability to quickly and efficiently scale the business across Europe," the company's CEO Joseph Bayern disclosed.

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