Global brand house and one of the most relevant sellers of premium cannabis accessories, kid-resistant and specialty vaporization products, Greenlane Holdings, appears to have closed November with big news. The company, which recently merged with KushCo, announced yesterday that it completed its previously announced acquisition of DaVinci, a leading manufacturer and developer of premium portable vaporizers.
With the closing of this deal, DaVinci is expected to be able to generate around $12 million in sales on gross margins of 60%. Greenlane says that with the arrival of this company into the equation, it is possible that revenues and profits will be significantly increased. According to reports, the total consideration for the acquisition will be up to $20 million, which will be comprised of both stock and cash. This will be subject to the achievement of various earn-outs based on future performance.
Nick Kovacevich, CEO of Greenlane, says that completing another acquisition is always welcome news, especially on this occasion as this is a fast-growing, fast-moving, innovative, and high-margin brand that will exponentially enhance Greenlane’s portfolio of proprietary brands.
He added, “Not only do we expect this strategy to help us enhance margins and profitability, but we believe it also expands our strategic defensive moat and positions us for rapid global expansion without any major catalysts, such as federal legalization. This strategy becomes even more attractive when considering that virtually no other company is building a house of brands on the ancillary non-plant-touching side. Overall, we are pleased to have completed this acquisition for a leading brand, and even more so, to continue to make incremental progress on our Greenlane Brands revenue targets for 2022 and 2023.”
Greenlane’s efforts to remain at the top of the industry now appear to continue to be reinforced. Kovacevich says DaVinci has been an exceptional partner over the past few years, and now that the acquisition has been formalized, it is possible that the long-standing relationship will result in nothing but significant collective gains.