Through its recent acquisition of Form Factory, Inc., Acreage Holdings has essentially become a national cannabis consumer packaged goods company capable of manufacturing and distributing predictable and scalable brands on a national scale.
Acreage, a vertically integrated, multi-state cannabis operator, and Form Factory, a multi-state manufacturer and distributor of cannabis-infused beverages and edibles, announced a definitive agreement in December for Acreage to acquire Form Factory in an all-stock transaction valued at US$160 million. The deal combines Form Factory’s expertise as a one-stop-shop for developing, manufacturing and distributing cannabis products with Acreage’s 19-state footprint of growing, manufacturing and distributing medical and adult-use cannabis products
Now, Acreage can create and distribute consistent, scalable products, as any traditional non-cannabis CPG company would.
“Creating a wide range of products that meet the diversified tastes of consumers and owning the national manufacturing and distribution platform to ensure their consistent and predictable delivery on a national basis is a key to long-term success and value creation in the cannabis industry,” said Kevin Murphy, founder, chairman and chief executive officer of Acreage Holdings, in a company press release announcing the acquisition. “With this acquisition, we are now positioned to be both the first and only national cannabis CPG company and distribution platform in the U.S. cannabis industry. The combination of the largest U.S. operational footprint, combined with the unique food and beverage manufacturing capabilities of Form Factory sets us on a direct path to become the Procter & Gamble of cannabis.”
Through the transaction, Acreage will acquire Form Factory’s cultivation and processing licenses in Portland, Ore.; Los Angeles and Oakland, Calif.; as well as Form Factory’s facilities. The acquisition also grants Acreage access to a management services contract for a Washington contract manufacturing business, as well as all of Form Factory’s intellectual property.
“We are thrilled to be joining the Acreage family,” said Tony Bash, co-founder and co-CEO of Form Factory, in the press release. “The merger with Acreage represents the fulfillment of the vision we had when we founded Form Factory. With Acreage, our mission to create the largest supplier of trusted cannabis products in the world will accelerate, providing all people with access to the benefits of cannabis.”
The deal was approved unanimously by the boards of directors for both Acreage Holdings and Form Factory, and the transaction closed on April 17. Acreage has started operations at the Oakland facility, where it will manufacture internal brands such as Natural Wonder, as well as external brands that will be sold through wholesale and owned retail channels.
