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SNDL To Acquire Valens For $138 Million, Creating Formidable New Canadian Player

August 23, 2022

SNDL has announced an agreement to acquire fellow Canadian cannabis group Valens for $138 million in an all-stock transaction, creating a new vertically integrated player in the Canadian market. With the acquisition, expected to close next January, SNDL says it will have the highest pro forma Canadian cannabis revenue on a last fiscal quarter annualized basis.

SNDL says it’s the largest private sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, and Spiritleaf. Its cannabis brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto, Spiritleaf Selects, and Grasslands. By integrating Valens’ products into its portfolio, SNDL says it will increase its overall cannabis market share in Canada to 4.5% and its cannabis 2.0 product format market share to 5.2%, becoming a top 10 player in both categories.

The combined company will have 555,500 square feet of cultivation and manufacturing space and 185 cannabis stores under the Spiritleaf and Value Buds banners. Post-acquisition it will operate as SNDL Inc., and Valens shareholders will own approximately 9.5% of the pro forma entity.

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