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Canopy Growth announces plan to acquire US-based Acreage Holdings Inc. for US$3.7B

Date Closed

June 27, 2019

Lead Office



3.70 Billion USD

On April 18, 2019, Canopy Growth announced that it had entered into a definitive agreement to acquire 100 percent of the shares of US-based Acreage Holdings Inc. This two-part transaction began with a US$300 million option being paid to Acreage shareholders upon the approval of the deal. Upon completion of the acquisition, the total stock consideration payable to Acreage shareholders is valued at approximately US$3.4 billion. The transaction is the central part of Canopy's strategy for entering the US market, but it is contingent upon federal marijuana legalization in the US.

This agreement comes in the wake of a significant investment in Canopy Growth from Constellation Brands in 2018, as Canopy is using the cash from that investment to fund the acquisition of Acreage.

Greenhill & Co. Canada acted as financial advisor to Canopy Growth and its board of directors.

McCarthy Tétrault advised Greenhill with a team led by Robert Richardson that included David Woollcombe.