A Manchester-based cannabis wholesaler has completed the acquisition of a Belgian group for £3m.
Always Pure Organics (APO) has snapped up Distribution Legal Hemp (DLH) and NexGen (NG).
Funded by existing capital, APO takes 100% ownership of the group with founder and chief executive Gavin Ogilvie taking charge of the enlarged group.
DLH/NexGen’s CEO, Joeri Perneel, will start in a newly-created role as APO’s chief commercial officer, whilst retaining a focus on the companies’ activities in the Benelux and French markets.
Over the past two years APO has increased staff from six to 62 and in the past year grown its revenues 215% to a 2021 forecast of £12.6m. Similarly DLH grew 170% in the past year.
Mr Ogilvie said: "As part of our ambitious global expansion plans, DLH gives us a brilliant complementary business. Belgium is the first nation in Europe to legalise the use of CBD flower through their existing tobacco substitutes legislation, so by buying DLH we have instantly secured 75% of Belgium’s CBD flower market.
"It’s likely that France will also seek to regulate the CBD flower through the same legal mechanism before long, and APO will therefore be in a strong strategic position to take full advantage of this new market when it opens."
Mr Perneel added: "Both companies have known each other and worked together for more than two years. The deal is on all levels complementary.
"DLH/NexGen is the market leader in Belgium within the segment of tobacco substitute and is a pioneer in the segment of wellness.
"We are only at the beginning of the journey and I’m happy to work with APO to build this new group into a world-class player."
