Operating as SNDL Inc., the combined company will be headquartered in Calgary, Alberta. The acquisition will make SNDL one of the largest adult-use cannabis manufacturers and retailers in Canada.
By integrating Valens' product suite into its portfolio, SNDL will increase its overall cannabis market share and enhance its product line while offering pricing flexibility to retail partners.
Additionally, combining SNDL's cannabis cultivation operations with Valens' low-cost biomass procurement capabilities will allow SNDL to offer a range of customized, innovative products to meet customer and consumer desires.
SNDL said the acquisition is expected to deliver more than $10 million of annual cost synergies. Together, with incremental revenue from greater distribution of Valens products, SNDL estimates that the acquisition will deliver upwards of $15 million of additional EBITDA on an annual run-rate basis.
"This is an exciting day for SNDL as we become stronger and more adaptable, with capabilities that provide us an opportunity to become a leader and trusted partner within the Canadian cannabis industry," said SNDL CEO Zach George. "SNDL's existing consumer packaged cannabis business will be transformed by Valens' high-quality extraction, processing and manufacturing capabilities. Broad capabilities in all relevant product categories will further our goals of bringing people together through exceptional products and experiences. With the close of this transaction, we will focus on integrating our assets and teams while delivering both cost synergies and incremental revenue from greater distribution of Valens products."
George will continue to serve as CEO and Tyler Robson, former CEO of Valens, will join SNDL’s leadership team as president of cannabis, effective Jan. 17. Andrew Stordeur, SNDL's former president and COO, has left the company.
"I am excited by the strong cultural fit between our teams and humbled by the opportunity to work alongside our new colleagues and leadership team," George said. "I want to thank and congratulate everyone at SNDL and Valens for their dedication and hard work in bringing this transaction to a successful conclusion. This is another significant milestone for our company, and we are determined to seize the opportunity to create value for our stakeholders and delight consumers.
Frank Krasovec, CEO of Norwood Investments and co-founder and chairman of DPC Dash, has been appointed to SNDL’s Board of Directors, which now has six members.