A Kelowna cannabis company has acquired another local manufacturer for $24.9 million.
On Monday, Jan. 25, The Valens Company announced it has bought LYF Food Technologies, an edibles manufacturer with expertise in novel product creation and infusion technologies.
Besides the initial $24.9 million, Valens stands to receive an additional $17.5 million after certain industry milestones are achieved, such as the company’s earnings before interest, taxes, and amortization (EBITA).
LYF has experience in producing food products and working with major grocery chains, health and wellness retailers and pharmacies.
The acquisition will significantly expand Valens’ edibles footprint and increase its ability to participate in a fast-growing product category.
Valens CEO Tyler Robson said LYF has set the standard for high-quality edibles in the Canadian cannabis market.
“LYF stood out for its product innovation and marketing teams, as well as its broad range of edible products which will introduce new formats to Canadian consumers that are typically only available in more mature markets,” he said in a statement.
LYF founders Paolo Pero and Matthew Amado added they are excited to join the Valens team.
“As a fellow Kelowna-based company, Valens’ vision for global growth resonated with the team and ultimately led us to recognize the significant value in combining what we have each uniquely created to bring a new level of manufacturing excellence to Canada and beyond.”