Greenlane expands European presence through Conscious Wholesale
US cannabis accessories seller Greenlane Holdings has agreed to acquire Conscious Wholesale, a European consumption accessories, and vaporizers wholesaler and retailer, to expand its global distribution, retail and e-commerce capabilities.
Conscious Wholesale with more than 30 employees distributes a wide range of products to around 700 points of distribution across over 20 markets in Europe.
Post-acquisition, Greenlane will increase its global presence through its existing distribution channels throughout Europe and complementary product portfolio, including Firefly, Davinci, PAX and Storz & Bickel.
Aaron LoCascio – chairman and CEO, Greenlane said: “The addition of the Conscious Wholesale platform, Dutch retail shop Azarius, and e-commerce site Vaposhop.com immediately provides us with a strong and established foothold in Europe and creates opportunities to expand the distribution of both our third-party suppliers and house brands.
“These businesses are highly synergistic with our existing distribution, retail and e-commerce capabilities, and are led by a talented team with a strong culture that is an excellent fit with Greenlane.”
Greenlane acquisition of Conscious Wholesale. Image courtesy of Stuart Miles/Freedigitalphotos.net.
Under the agreement, Conscious Wholesale will operate a retail shop in the Netherlands as well as e-commerce websites, including Vaposhop.com.
The transaction is valued at approximately €7.5 million, with €4.5 million paid upfront, including €3 million in cash and €1.5 million in stock.
In addition, €3 million is payable in cash and stock on the achievement of sales growth and gross margin targets.
Greenlane has also announced a new European logistics partnership with UK-based Access Fulfillment to deliver products to customers throughout the region.
Aaron LoCascio said: “Our partnership with Access Fulfillment is expected to significantly expand our access to the European market and, coupled with the Conscious Wholesale acquisition, accelerates our global growth and reach.”
During calendar 2018, the acquired businesses generated $11.9 million of revenue on a consolidated basis.