Canopy Growth Corporation is acquiring Germany’s Storz & Bickel GmbH & Co. KG (plus related entities and IP) for approximately €145 million (US $165m).
Based in Tuttlingen, Germany, Storz & Bickel are designers and manufacturers of medically approved vaporizers, most notably the Volcano Medic and the Mighty Medic.
Storz & Bickel has spent the last two decades certified factory, achieving ISO 13485 certification in 2009.
The company has exported devices to 50 markets around the world.
The acquisition will see Storz & Bickel’s eponymous founders Markus Storz and Jürgen Bickel remaining as a part of the organization to continue driving the business forward alongside Canopy Growth’s management.
“Joining Canopy will enable S&B to take the next significant development step forward. Access to Canopy Growth’s extensive portfolio of test laboratories as well as pharmaceutical and medical-scientific know-how opens up entirely new product development opportunities,” said Jürgen Bickel, CEO, Storz & Bickel.
“I am looking forward to actively shaping this development personally in a senior leadership position. On the one hand to ensure continuity and on the other hand to accelerate the development together with the Canopy team to lead it to unprecedented heights.”
“Canopy Growth is poised to lead the high-margin vaporizing category around the world.”
Bruce Linton, Canopy Growth
“We view this as a marquee acquisition of the most recognized technology company in the industry,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth.
“This Company is well positioned for the next wave of federally-regulated products in Canada beyond dried flower and edible oils. By combining Canopy’s existing designs and Canada’s open environment for federally permissible R&D with Storz & Bickel’s deep IP portfolio and management team, Canopy Growth is poised to lead the high-margin vaporizing category around the world.”
Storz & Bickel is a profitable business with an IP portfolio of 17 filed patents.
Drawing on talent from Ottawa’s world-renowned tech ecosystem, Canopy Growth also has a team of hardware and software engineers developing a line of advanced vaporizing devices.
Peter Popplewell commented, “S&B quite literally invented the vaporizer market. They make the best performing, highest quality, and most respected products in the segment. Leveraging their IP into the tech-heavy vaporizer designs we have in progress will allow us to bring products to market that will set a new bar in terms of quality, functionality, and consumer safety.”
An ISO 13485 certification means that the Storz & Bickel facility has been scrutinized by external auditors and found to be compliant with all requirements needed to produce medical devices.
Buying Storz & Bickel strengthens Canopy’s German operations. With European headquarters in Frankfurt, Canopy Growth also operates a GMP-certified import and export facility in St. Leon-Rot where medical cannabis is imported from Canada, packaged, labeled, and distributed to approximately 2,000 pharmacies in Germany and other European markets.
During the acquisition process Greenhill & Co. Canada Ltd. acted as financial advisor to Canopy Growth and provided a fairness opinion to the Canopy Growth Board of Directors.Cannabis Business Worldwide