Aphria Inc (NYSE:APHA) rose Wednesday after announcing that it has completed its acquisition of CC Pharma GmbH, a distributor of drug products including medical cannabis to more than 13,000 pharmacies in Germany and throughout Europe.
Leamington, Ontario-based paid Aphria paid €18.92 million (US$22 million) in cash to the former shareholders of CC Pharma with an earn-out multiple on future earnings before interest, taxes, depreciation and amortization of as much as another €23.5 million (US$27 million) if certain milestones are met.
Shares of Aphria advanced $0.16, or 2.5%, to US$6.49 in New York’s premarket trading.
“As one of the most promising medical cannabis markets in the world, Germany is a top strategic priority for Aphria,” Vic Neufeld, CEO of Aphria, said in a press release. “With today’s acquisition of CC Pharma, Aphria is creating a German and ultimately pan-European platform that brings together demand, supply and distribution.”
Founded in 1999, CC Pharma has more than 230 employees and offices in Germany, Denmark, Poland and the Czech Republic. The company holds 318 active German and 692 active European Union pharmaceutical licenses, Aphria said in a press release.
CC Pharma operates a production, repackaging and labeling facility at its headquarters in Densborn, Germany. In 2018, the company generated revenue of about €262 million (US$300 million), with Ebitda of about €10.5 million (US$12 million).
Aphria is also active in South America. Earlier this month, it announced that its Colombian subsidiary, Colcanna SAS, is partnering with the Colombian Medical Federation, which oversees the ethics of the medical profession, to develop an academic curriculum on the medicinal use of cannabis.
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