Vireo Growth said it has entered into an agreement to buy Bridgewell Agribusiness, a supplier of organic and non-GMO food and agricultural products to manufacturers.
Bridgewell produces several food products including beans, grains, nuts and seeds, along with agricultural products like fertilizers and minerals. The company said it has manufacturing operations in Clackamas, Oregon, warehouses throughout the U.S. and Canada and growers around the world.
The purchase price is $40 million, which is subject to adjustments for, among other things, approximately $30 million of assumed indebtedness of Bridgewell that will remain outstanding following closing and the assumption of certain other transaction expenses.
The deal continues Vireo's recent string of M&A activity, though it's more indirectly related to the cannabis industry.
Vireo last month closed its deal to acquire cannabis cultivation unit Hawthorne from Scotts Miracle-Gro after recently buying retail assets from Eaze, PharmaCann and Schwazze. Those transactions expanded Vireo’s retail presence in Colorado to 55 stores.
Vireo also recently announced an agreement with Glass House, one of the largest cannabis growers in the U.S., to combine their California retail operations into a new joint venture.
Glass House currently operates 11 California retail locations, and Vireo operates 12 dispensaries and home delivery operations recently acquired from Eaze. The combined network will be supported by a preferential supply agreement with Glass House. Cory Azzalino, Vireo's president of California and former CEO of Eaze, has been tapped to run the joint venture, where he will oversee operations and lead the platform's retail acquisition and expansion strategy.
Vireo also acquired Fluent, though it is divesting that company's operations in Texas.
