The Valens Co., a Canadian cannabis manufacturer, acquired Deerfield Beach-based Green Roads in a bid to boost its presence in the U.S.
The company closed the $40 million acquisition June 21. In a statement, CEO Tyler Robson said purchasing Green Roads, one of the country's largest CBD manufacturers, represents a "monumental" step in Valens' quest to become a global manufacturer of cannabis consumer packaged goods.
"Valens now has a significant presence in the largest cannabinoid market in the world, representing a monumental step in our international expansion strategy," Robson said.
Combining the companies will enable Valens to expand its distribution overseas and increase its product offerings. That begins with the introduction of Green Roads products to the Canadian market in the second half of this year.
Green Roads was founded by former compound pharmacist Laura Baldwin Fuentes and her business partner, Arby Barroso, in 2013. Fuentes previously told the Business Journal she spent nearly three years developing Green Roads' proprietary cannabidiol (CBD) formulations before leaving her full-time job to scale the company in 2016.
Proponents say CBD, a non-psychoactive compound produced from cannabis, can be used to treat health conditions such as anxiety, chronic pain and insomnia. The possession and sale of CBD products was legalized in the 2018 Farm Bill, but there are no Food and Drug Administration-approved drugs that contain the substance on the market yet.
According to data from Florida Department of Health, CBD and marijuana sales rose sharply in the early days of the Covid-19 pandemic and have persisted since. There are already more than 1,000 CBD brands jostling for market dominance, according to cannabis research firm Brightfield Group.
Valens reports it will invest $10 million into Green Roads to capitalize on the fast-growing U.S. CBD market, anticipated to reach $15.9 billion by 2026. That includes bolstering its e-commerce platform and expanding Green Roads' retail distribution network.
"Valens and Greens Roads have a shared ethos of keeping our customers at the heart of our strategic decision-making, and offer complementary products that foster brand loyalty and drive high margins," Green Roads President and COO Dale Baker said.
It's unclear what positions Green Roads executives will hold in the combined company. Neither Valens nor Green Roads immediately responded to a request for comment.
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