(BUSINESS WIRE) Tilray, Inc., a leading cannabis research, production and distribution company has announced that it has entered into an agreement to acquire Manitoba Harvest from Compass Group Diversified Holdings, LLC. Under the terms of the agreement, Tilray will acquire the world’s largest hemp food manufacturer and leading natural foods company for $318 million.
Founded in 1998, Manitoba Harvest produces, manufactures, markets and distributes a broad-based portfolio of hemp-based consumer products that are sold in over 16,000 stores across the U.S. and Canada. Products in the Manitoba Harvest portfolio include oils, granola, protein powder and milk. Manitoba Harvest has plans to launch a line of CBD containing Broad Spectrum Hemp Extracts as well as a line-up of Hemp Yeah! wellness bars this summer.
The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with cannabinoids, including cannabidiol (CBD). By leveraging Manitoba Harvest’s established distribution network, Tilray plans to accelerate its expansion into the U.S. and Canadian markets, where legal, for CBD products. Manitoba Harvest also brings to Tilray an experienced team and manufacturing capabilities, including the addition of two high quality BRC AA+ certified manufacturing facilities as well as significant sales and distribution capabilities.
“Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global alcohol, CPG, and functional food and beverage categories,” said Brendan Kennedy, Tilray President and CEO.
Upon completion of the acquisition, Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray, continue to operate its seed-to-shelf supply chain model and leverage its retail relationships across North America. Tilray and Manitoba Harvest will also work together to develop innovative new CBD wellness products and hemp-based consumer food products.