A SCOTTISH medical cannabis entrepreneur has completed the £3 million acquisition of a key Belgian operation.
Funded by existing capital, Manchester-headquartered Always Pure Organics takes 100 per cent ownership of Distribution Legal Hemp and NexGen with "no personnel churn”.
Gavin Ogilvie, APO founder and chief executive, will lead the enlarged company, and DLH/NexGen chief executive Joeri Perneel will start in a new role as APO’s chief commercial officer, whilst retaining a focus on the companies’ activities in the Benelux and French markets.
The purchase gives APO, a described as a top three wholesale and white label market leader in the UK, Japan, and Europe, access to an important distribution hub.
With 80 per cent of its client base is in Europe, the "post-Brexit acquisition enables APO to continue to offer its EU clients a quick and efficient supply service".
APO has increased staff from six to 62 and in the past year grown its revenues 215% to a 2021 forecast of £12.6m, while DLH grew 170%.
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Mr Ogilvie said: “Belgium is the first nation in Europe to legalise the use of CBD flower through their existing tobacco substitutes legislation, so by buying DLH we have instantly secured 75% of Belgium’s CBD flower market.
“It’s likely that France will also seek to regulate the CBD flower through the same legal mechanism before long, and APO will therefore be in a strong strategic position to take full advantage of this new market when it opens.”
Mr Perneel said: “Both companies have known each other and worked together for more than two years.
"The deal is on all levels complementary. DLH/NexGen is the market leader in Belgium within the segment of tobacco substitute and is a pioneer in the segment of wellness.
"We are only at the beginning of the journey and I’m happy to work with APO to build this new group into a world-class player.”
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