Canadian Cannabis Producer Aphria Sees Hostile Takeover BidDecember 28, 2018
Canadian cannabis producer Aphria is expected to become the target of a hostile takeover by U.S. cannabis retailer Green Growth Brands Ltd (GGB), Bloomberg reports. Green Growth, based in Columbus, Ohio, said in a statement that it plans to make an all-stock bid for Aphria, valuing the producer at C$11 ($8) a share, or roughly C$2.8 billion ($2.1b), representing a 46% premium over Aphria’s closing price on December 24.
In a statement, Aphria responded that its board “believes that GGB is attempting to acquire the company through a highly conditional offer at a significant discount to its current and future value.”
Green Growth, whose retail brands include Camp, Meri + Jayne, and The Source, focuses on beauty and wellness cannabis products. Aphria has significant ties to the drinks industry. Its president is Jakob Riphstein, formerly CFO of Diageo North America, and Diageo’s former president of U.S. spirits and Canada, Tom Looney, sits on its board. Aphria also has an exclusive distribution agreement in Canada with Southern Glazer’s subsidiary Great North Distributors. —Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.