Constellation seals $4bn deal with Canopy Growth
Drinks giant Constellation Brands has completed its US$4 billion investment deal with Canadian cannabis company Canopy Growth, which has been approved by the Canadian government.
The deal between the two companies, which was first announced on 15 August, was approved by an overwhelming majority of Canopy Growth shareholders and has been granted all required regulatory approvals, The union has also got the approval of the Canadian government under the Investment Canada Act.
“We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term.
“The global cannabis market presents a significant growth opportunity and Canopy Growth is well-positioned to establish a strong leadership position in this fast-evolving category,” said Constellation Brands’ CEO Rob Sands.
Sands is due to step down as CEO on 1 March but will stay on at Constellation Brands in the role of executive chair.
“With this investment, Constellation Brands increases its ownership interest in Canopy Growth to approximately 37% of outstanding common shares of Canopy Growth and has appointed two members of its executive team, as well as two independent directors, to the board of directors of Canopy Growth,” Sands added.
Bruce Linton, chairman and co-chief executive officer of Canopy Growth, said the deal has “opened up a world of opportunities” for the company.
“We have never been in a better position to create shareholder value. This investment was a landmark moment for the entire sector when it was announced.
“Now that the capital is Canopy’s to deploy, we’re going to get to work increasing our lead by adding strategic assets around the world,” he said.
Canopy Growth is a world-leading cannabis and hemp company offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. The firm has operations in 12 countries across five continents.