Calgary, Alberta-headquartered High Tide is again dipping its toes in the U.S. acquisition market, this time with a definitive agreement to buy FabCBD, a Milwaukee-based e-commerce marketplace for hemp-derived CBD products and accessories.
High Tide announced early Monday it is acquiring 80% of Fab Nutrition, which does business as FabCBD, for $20.6 million ($25.4 Canadian dollars) in cash and stock.
High Tide will have a three-year option to acquire the remaining 20% at any time, according to a news release.
The deal comes on the heels of High Tide’s $8 million acquisition of Smoke Cartel, another e-commerce website that sells cannabis accessories and CBD products in the U.S.
In 2020, FabCBD reported revenue of $10.8 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.3 million.
The deal will bolster High Tide’s U.S. portfolio. The Canadian company launched CBDcity in the U.S. last year.
High Tide said it intends to launch the FabCBD brand in the European Union.
He said the U.S. expansion strategy is based on the premise that High Tide does not need to wait for legalization to expand south of the border.
High Tide trad0s as HITI on the TSX Venture Exchange.
