Calgary-based cultivation company Sundial Growers is joining the cannabis consolidation movement, snapping up fellow Alberta-based retail network Inner Spirit Holdings for a cool ~$131 million, according to a press release.
The nitty gritty
Shareholders will be given 30 cents and 0.0835 of a Sundial share for each Inner Spirit share they own. The deal, which has already been approved by boards of both companies, is expected to close early in Q3.
There are 86 Spiritleaf stores in five Canadian provinces, according to Marijuana Business Daily, most of which are franchised by Inner Spirit. As for 2020 revenue, Inner Spirit reported close to $27 million, and the store network reached $105.3 million in sales.
(BofC connected with Inner Spirit CEO Darren Bondar during a recent event focused on cannabis beverages. Check it out.)
Dialing into data
A major piece of Sundial’s strategy is likely tapping into the consumer insights collected at the retail level and reaching customers at the store level, according to MJ Biz, who indicated as much in a March filing.
“Our shared Albertan roots and commitment to data-driven consumer insights make for an ideal partnership,” said Sundial CEO Zach George in the release. “Sundial’s capital base will enable us to support continued expansion and deepen the capabilities of the Spiritleaf retail brand.”