Balanced Health owns and operates largest brands in the hemp-derived cannabidiol market in the U.S., providing Village Farms (NASDAQ:VFF) with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, and the broader consumer packaged goods wellness arena.
Balanced Health is a profitable business and the acquisition is expected to be immediately accretive to net income.
The addition is expected to contribute over $30 million annualized sales at an annualized adjusted EBITDA margin of more than 15% in 2022.
The purchase price is $75 million satisfied through $30 million in cash (net of debt and transaction expenses) and ~4.7M common shares of the Company equal to $45 million to the sellers of Balanced Health.
""Importantly, the addition of the Balanced Health platform provides us with another potential pathway to participate in the US high-THC cannabis market, when permitted to do so, that could enable us to more rapidly access the market, in advance of our plans to convert our more than 5.5 million square feet of high-tech greenhouse facilities in West Texas..".