Canopy Growth Enters Cannabis Vaporizer Market with C$220 Million Acquisition of Volcano Manufacturer

Based in Germany, Storz & Bickel are designers and manufacturers of medically approved vaporizers, like the Volcano® Medic and the Mighty® Medic

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December 6, 2018
Press Release

SMITHS FALLS, ON, Dec. 6, 2018 /CNW/ – Canopy Growth Corporation has finalized an all-cash transaction to acquire Storz & Bickel GmbH & Co. KG, related entities, and IP for a purchase price of up to approximately €145 million. With a 22-year track record of breakthrough innovations, Storz & Bickel is widely recognized as a leader in vaporizer design and manufacturing.

Based in Tuttlingen, Germany, Storz & Bickel are designers and manufacturers of medically approved vaporizers, most notably the Volcano® Medic and the Mighty® Medic. Storz & Bickel has spent the last two decades developing an automated and internationally certified factory, achieving ISO 13485 certification in 2009. The company has exported devices to 50 markets around the world.

The acquisition will see Storz & Bickel’s eponymous founders Markus Storz and Jürgen Bickel remaining as a part of the organization to continue driving the business forward alongside Canopy Growth’s management.

“I am looking forward to actively shaping this development personally in a senior leadership position. On the one hand to ensure continuity and on the other hand to accelerate the development together with the Canopy team to lead it to unprecedented heights," Bickel said. 

Storz & Bickel is a global business with proven products and consistently increasing revenues. Its IP portfolio of 17 filed patents will improve Canopy Growth’s existing vaporizer design operations, overseen by Chief Technology Officer, Peter Popplewell, PhD.

Drawing on talent from Ottawa’s world-renowned tech ecosystem, Canopy Growth has a team of hardware and software engineers developing a line of advanced vaporizing devices.

An ISO 13485 certification means that the Storz & Bickel facility has been scrutinized by external auditors and found to be compliant with all requirements needed to produce medical devices. It is a prestigious and onerous standards designation that will give Canopy Growth a multi-year lead in the medically approved vaporizer market. The German facility has the capacity to satisfy growing product demand and based on Canopy Growth’s existing international footprint and access to Storz & Bickel’s production expertise, the Company is now well-positioned to lead the vaporizer segment moving forward.

In addition to strengthening Canopy Growth’s path to market with advanced vaporizing technology, bringing Storz & Bickel under the canopy strengthens the Company’s German operations. With European headquarters in Frankfurt, Canopy Growth also operates a GMP-certified import and export facility in St. Leon-Rot where medical cannabis is imported from Canada, packaged, labeled, and distributed to approximately 2,000 pharmacies in Germany and other European markets.

Canopy Growth’s substantial cash reserve is amongst its greatest strategic advantages. Management will continue to add to the largest and most sophisticated international production platform with strategic acquisitions that improve its IP portfolio and give Canopy Growth subsidiaries access to new markets by further strengthening supply capabilities.

During the acquisition process Greenhill & Co. Canada Ltd. acted as financial advisor to Canopy Growth and provided a fairness opinion to the Canopy Growth Board of Directors.