In a deal valued at $75 million, Village Farms International, Inc. is buying Colorado-based Balanced Health Botanicals. The acquisition provides Village Farms with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, as well as the broader consumer packaged goods wellness arena.
“As a well-established, profitable leader in the US retail CBD market, Balanced Health is the right opportunity, at the right time, to take our next major step forward in anticipation of regulatory clarity that will propel the growth of this nascent market,” said Michael DeGiglio, CEO, Village Farms International.
Balanced Health has established a diverse portfolio of CBD and other cannabinoid products, including ingestible, edible, and topical applications that are distributed via e-commerce and brick-and-mortar retail channels.
“We are ecstatic to join forces with Village Farms, a leader in the global cannabis and CBD industries,” said Chase Terwilliger, Chief Executive Officer of Balanced Health Botanicals. “As part of the Village Farms organization, we will be able to take the next steps in our growth strategy, with the opportunity for prudent, return-focused investments, to further expand our market share and drive efficiencies, with a focus on continued profitability.”
“Importantly, the addition of the Balanced Health platform provides us with another potential pathway to participate in the US high-THC cannabis market … in advance of our plans to convert our more than 5.5 million square feet of high-tech greenhouse facilities in West Texas – one of the most favorable environments for cannabis cultivation in the continental US – for large-scale, low-cost production of cannabis,” said DeGiglio
The deal consists of $30 million in cash and $45 million in common shares of the company. While Balanced Health is only CBD at this time, Village Farms also noted that the deal provides an additional potential pathway to the US high-THC cannabis market.