Aurora Cannabis (NASDAQ:ACB) has announced the acquisition of Safari Flower Company for a total consideration of $26.5 million, a strategic move designed to significantly expand its European Union Good Manufacturing Practice (EU GMP) cultivation and manufacturing capacity.
The center of the deal is a 59,000-square-foot facility optimized for the production of pharmaceutical-grade cannabis flower.
This added capacity will be utilized to supply high-growth international medical markets, specifically targeting Germany, Australia, Poland, and the United Kingdom.
The transaction was structured with a combination of equity and cash, involving the issuance of 2,417,180 common shares and a $15 million cash payment at closing.
An additional $2 million contingent cash payment is also part of the agreement.
By integrating Safari Flower’s specialized production capabilities, Aurora aims to strengthen its competitive advantage in jurisdictions with strict regulatory requirements for medical cannabis imports.
Management expects the acquisition to begin contributing positively to the company's adjusted EBITDA in fiscal 2027.
Further financial and operational benefits are anticipated in 2028 as the assets are fully integrated into Aurora’s global distribution network and production workflows are optimized.