Hexo, a cannabis producer based in Gatineau, in Quebec, announced the acquisition of the Canadian company Redecan for 925 million CAD in cash and stock.
This acquisition is HEXO’s third significant transaction this year, following the acquisition of Zenabis in February for 235 million CAD and 48North Cannabis Corporation in early May for 50 million CAD.
The acquisition of Redecan, announced early last Friday, will bring Hexo into the top 3 in the Canadian cannabis market, alongside Canopy Growth and Tilray.
Redecan was one of Canada’s top-performing cannabis producers in 2020.
Redecan’s share of the cannabis market increased from 5.1% in early 2020 to 6.9% in the first quarter of this year, according to data reported by MJBizDaily. Hexo also doubled its global market share from 2.9% to 6%.
“The Canadian industry continues to evolve at a rapid pace, and we are at the forefront of this change,” said Sébastien St-Louis, CEO, and co-founder of HEXO, in a press release.
“We will also be able to provide consumers across Canada with a diverse and innovative line of high-quality products, with an enhanced brand offering that will allow us to better compete with other licensed cannabis producers in Canada while positioning the company for future expansion in the United States,” he added.
“Joining the HEXO team will allow us to leverage our combined strengths and accelerate our growth in Canada and abroad. We look forward to building a leading global organization together,” said Pete Montour, the co-founder of Redecan.
Thanks to these three transactions, HEXO will be number one in terms of market share in the cannabis sector with four of its main markets being British Columbia, Alberta, Ontario, and Quebec.
