Canopy Growth is putting its massive cash reserves towards development of new vaporizer technology, announcing Thursday that it has acquired a German vape company.
The Smiths Falls-based cannabis company will buy vaporizer developer Storz & Bickel in an all-cash deal valued at $221 million. Over the past two decades the Tuttlingen, Germany firm has built up a reputation and sizeable patent portfolio of vape products for the medical market.
Calling the deal a “marquee acquisition,” Canopy Growth co-CEO Bruce Linton said the federally open nature of Canada’s cannabis market will allow the combined companies to excel in R&D on the next wave of vaporizer tech. A release notes that Canopy is already developing a line of vapes with a team of software and hardware engineers in Ottawa.
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“S&B quite literally invented the vaporizer market,” said Canopy’s chief technology officer Peter Popplewell in a statement.
“Leveraging their IP into the tech-heavy vaporizer designs we have in progress will allow us to bring products to market that will set a new bar in terms of quality, functionality and consumer safety.”
Noting its large cash reserves – bolstered by a $5-billion investment from Constellation Brands that closed last month – Canopy Growth said in the release that it plans to continue adding to its product portfolio with future acquisitions.
