Curaleaf International Holdings Limited has signed a definitive agreement to acquire a 55% stake in Four 20 Pharma GmbH, a fully EU-GMP & GDP licensed German producer and distributor of medical cannabis with its own product line.
The unique partnership creates a strategic pathway for Curaleaf to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany and ensures alignment between Curaleaf and Four 20 Pharma's current management team to rapidly build a best-in-class German business and a strong platform for Germany's eventual adult-use market. Germany currently represents the largest medical cannabis market in Europe, with a total addressable market of over €200M in 2022 and expected to grow to nearly €1bn by the end of 2024 via adult-use legalization, which is slated to begin in late 2023 or early 2024.
Four 20 Pharma is among the largest cannabis operators in Germany, with a greater than 10% market share. From its inception, Four 20 Pharma has focused on bringing top quality flower to market.
Boris Jordan, Curaleaf Executive Chairman, stated, "By partnering with Four20 Pharma, Curaleaf's European business will immediately gain additional critical mass and be in a superior position to capitalize on the accelerating trends in the European cannabis market. The opportunity in Europe cannot be understated, and Curaleaf is uniquely differentiated from other U.S. MSOs via our already significant presence as the largest and most licensed cannabis company in Europe. With cultivation facilities in Portugal, manufacturing facilities in Spain and UK, and rapidly growing patient numbers across Europe, particularly in the UK, Curaleaf serves the entire legal cannabis ecosystem and is also poised to capitalize on the adult use opportunity as regulation starts to unlock. This strategic transaction further underscores our aspiration to be the major player in the European market and the leading global cannabis company."
Miles Worne, President of Curaleaf International, said, "Four 20 Pharma is a leading German distributor with a branded product that consumers love. They've captured significant market share in Germany by sourcing product from top EU-GMP certified suppliers around the world and building strong connections with German medical consumers by providing the highest quality flower in a namesake branded offering. As such, Four 20 Pharma is uniquely positioned to capitalize on Germany's conversion from a medical to an adult-use market, and we're thrilled to be partnering with their talented management team."
Torsten Greif, Managing Partner of Four 20 Pharma, stated, "We have been exploring possible partners to stake our claim in the future German and European cannabis markets, and in Curaleaf, we know we've found the undisputed leader and the best partner. From the beginning of our conversations, it was clear that they supported our strategic vision and respected our autonomy and entrepreneurial approach. Having full access to the tremendous knowledge and assets of the Curaleaf team will accelerate our future growth projects and help drive our company to the next level."
Thomas Schatton, Managing Partner of Four 20 Pharma, added, "Curaleaf shares our values of customer dedication and commitment to product quality, and we are incredibly excited about our future together. The team at Four 20 is thrilled to be able to leverage Curaleaf's proven R&D expertise to help us continue delivering the best quality products to our medical patients and the promising future adult-use market."
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