Organigram Global has entered into a definitive agreement to acquire German operator Sanity Group GmbH. "Organigram's proven track record in executing highly strategic and complementary M&A is exemplified by our proposed acquisition of Sanity Group, a transaction that is both strategically significant and financially accretive. By combining our strengths as focused cannabis pure play companies, we will be well-positioned to deliver meaningful value for our shareholders and accelerate growth in key European markets. We are truly excited about the opportunities ahead with this acquisition as we are now poised to set a new standard in the global cannabis sector together," said Paolo De Luca, Chief Strategy Officer at Organigram.
"The proposed acquisition of Sanity Group marks a pivotal step in Organigram's global expansion strategy as a leader in the rapidly expanding cannabis industry," said James Yamanaka, CEO of Organigram. "This transformational acquisition will bring together two market leaders, extend our commercial footprint into Europe, and strengthen our competitive edge in the world's largest federally legal cannabis markets."
Based in Berlin and founded in 2018, Sanity Group's primary operations are centred in Germany. The German medical cannabis market was valued at over €2 billion in 2025, serving approximately 800,000 patients. The market is forecast to surpass €4.5 billion by 2028 expecting a 50% year-over-year growth rate, with the patient population expected to reach around 1.8 million (~2.0% of the population), bringing it on par with other major global medical markets, such as Israel (1.9%) and Australia (2.3%).
"Based on our partnership to date, I have great confidence in both companies' vision to scale internationally," said Finn Hänsel, CEO of Sanity Group. "Together we will unlock multifaceted growth opportunities, particularly through entry into new European markets. Organigram has already proven to be an exceptional partner, with deep expertise in cultivation, manufacturing, patient-focused research and innovation. These strengths will be critical in actively shaping the global cannabis market. Our strategic objective is to build a global market leader over the coming years."
As part of the proposed transaction, Sanity Group has been valued at a total of up to EUR 250 million, comprising an upfront EUR 130 million and up to EUR 120 million linked to defined performance metrics for twelve months ending March 31, 2027. Decisions regarding a future governance structure have deliberately not yet been made. "At present, our primary focus is on thoughtful integration and the creation of long-term value, rather than on rapid structural changes," explained Seyit Kaya, CFO of Sanity Group.
For more information:
Organigram Global Inc.
[email protected]
organigram.ca/
Sanity Group
[email protected]
sanitygroup.com
