Red White & Bloom has successfully closed the previously announced purchase of Ayurcann.
"The successful completion of this acquisition marks an exciting milestone for Red White & Bloom," said Colby De Zen, president of Red White & Bloom Brands, in a statement. "We are adding some of Canada's most recognized brands in the vape and pre-roll categories, a talented team, and a highly complementary operating platform that strengthens our position in one of the world's most competitive cannabis markets. We believe this transaction delivers immediate value through increased revenue and EBITDA, while also creating a powerful foundation for future growth. As we continue to expand our footprint across North America and other legal cannabis markets, we see significant opportunities to leverage the strength of the Ayurcann brands across a much broader platform. We are excited about what this means for our customers, our team and our shareholders."
With the completion of the transaction, Red White & Bloom has expanded its Canadian operating platform through the acquisition of a scaled and fully integrated cannabis manufacturing and brand portfolio. The acquired business includes Fuego, Xplor and Happy & Stoned brands, together with an active portfolio of more than 90 SKUs distributed through approximately 2,500 retail locations across Canada, primarily within the high growth vape and pre-roll categories. The acquisition also includes a Health Canada-licensed formulation, manufacturing and packaging facility in Pickering, Ontario, operational inventory and equipment, established customer and supplier relationships, distribution arrangements spanning eight provinces and territories, and all licenses required to continue operating the business.
The acquisition represents a milestone in Red White & Bloom's strategy to build a leading vertically integrated cannabis company with operations spanning Canada and the United States. Management expects the transaction to be immediately accretive to both revenue and EBITDA while enhancing the Company's scale, manufacturing capabilities, product breadth and national distribution footprint. In addition, the combination is expected to generate operational synergies across cultivation, procurement, manufacturing, logistics and administration, while supporting continued product innovation and new product development.
