RIV Capital, a Toronto, Canada-based investment firm, recently announced the acquisition of Etain Health, a New York-based marijuana company, for $247 million. The firm is currently financed by Scotts Miracle-Gro, the lawn and garden maintenance giant.
RIV Capital recently said it completed all the necessary paperwork to buy the vertically integrated medical cannabis operator for cash and stock. The company used to be owned by one woman and one family, but now RIV Capital will take full ownership of those rights.
This is believed to be the largest transaction ever recorded involving a woman-owned company in the cannabis industry. RIV directly, and Scotts Miracle-Gro indirectly, will have the opportunity to capitalize on the upcoming launch of highly anticipated recreational marijuana in the Empire State.
In a LinkedIn post, cannabis banking expert Tyler Beuerlein wrote, “This was a creative way for The Scotts Miracle-Gro Company to enter the direct plant-touching side of the cannabis industry.”
RIV Capital is an acquisition and investment firm that has for some time already received major financial backing from The Hawthorne Collective, a subsidiary of Scotts Miracle-Gro. The deal comes shortly after RIV Capital announced that a senior Scotts executive, Mark Sims, would move into the role of the company’s new CEO and president.
According to a company release, Sims will be responsible for leading the company’s formal entry into the US market and expansion into licensed adult-use operations in New York.
“The pending acquisition of the Etain business is the first step in the execution of the RIV Capital strategy, shifting from an investor in the cannabis value chain to a fully-fledged operator of licensed cannabis cultivation and dispensary facilities in the US,” Sims said in the release.
Under the terms of the transaction, $35 million will be paid in stock. The remaining $212 million will be delivered in cash.