Flora Growth, an all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, closed the previously disclosed acquisition of all of the issued and outstanding shares of Franchise Global Health, a multi-national operator in the medical cannabis and pharmaceutical industry, with principal operations in Germany.
“We view this acquisition as transformational as Flora pursues its strategic growth plan to lead the global market for cannabis and its derivatives,” said Luis Merchan, Chairman and CEO of Flora. “Flora has now secured a crucial footprint in an established international cannabis market, providing a unique opportunity for operational synergies and diversified growth. The acquisition adds to our distribution network, expanding our client base, and increases our ability to distribute wholesale cannabis products at scale into the European Union.”
The deal accelerates Flora’s expansion in Europe’s largest medical cannabis market as Germany moves toward the launch of an adult-use market estimated to be worth over $1 billion by 2026. The company believes Flora and FGH’s combined wealth of knowledge and intellectual property position the company well for the potential incoming recreational market.
“We are glad to complete this acquisition as we head into 2023. Together, we can now offer one of the world’s leading cultivators access to the burgeoning German market and establish new inroads into other markets in the European Union,” said Clifford Starke, CEO of FGH.