HEXO is set to acquire Redecan, one of Canada’s largest privately owned licensed producers, for $925 million.
“We articulated a plan to become a top three cannabis player in the Canadian adult-use market,” said HEXO CEO and co-founder Sebastien St-Louis. “With today’s announcement, we believe that we are on the verge of surpassing that objective to become the no.1 licensed producer by recreational market share. Building on our strong market momentum, the combination of HEXO and Redecan reinforces our position as an industry leader and creates a robust foundation for growth, efficiency at scale and improved financial results.”
“The Canadian adult-use industry continues to evolve at a rapid pace, and we are at the forefront of that change,” continued St-Louis. “With the addition of Redecan, we intend to leverage our combined expertise in product development, manufacturing and branding in Canada. We will also be able to provide consumers across Canada with a diverse and innovative range of high-quality products, with an enhanced brand offering that will enable us to better compete against other LPs in Canada, while positioning the company for future expansion in the United States.”
“We will work to expand our cutting-edge CPG partnerships, to grow our international footprint with a view to becoming a top three global cannabis products company, and to continue to drive shareholder value. On behalf of our entire management team, I look forward to warmly welcoming the Redecan team to the HEXO family,” continued St-Louis.
“Redecan’s unwavering focus on the consumer, along with lean operating principles and highly efficient automated manufacturing technology, have allowed us to establish a significant presence in the Canadian market,” said Redecan co-founder Will Montour. “We’ve now entered a phase where scale is key, and our complementary consumer bases, brand portfolios and distribution relationships can enhance financial performance.”
“Joining the HEXO team will leverage our combined strengths and accelerate our growth within Canada and internationally,” added Redecan co-founder Pete Montour. “We look forward to building a leading global organization together.”
For more information:
HEXO
204-490, Boulevard Saint-Joseph,
Gatineau, QC J8Y 3Y7
1-866-438-8429
invest@hexo.com
hexocorp.com