Local cannabis company swallows up edibles maker
The Valens Company has entered into the edibles segment, acquiring Kelownabased LYF Food Technologies Inc.
Valens purchased the company for $24.9 million, plus up to $17.5 million if certain milestones are achieved.
“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,” says Valens CEO Tyler Robson.
He says LYF set the standard of what high-quality edibles should be and has developed a diverse and flexible manufacturing platform.
LYF’s operation is located only minutes away from Valens.
“As a fellow Kelownabased 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,” said LYF founders Paolo Pero and Matthew Amado.
The deal strengthens Valens’ Cannabis 2.0 production capabilities and unlocks the company’s growth potential.
LYF is capable of white-label manufacturing and infusion technologies, which is similar to Valens. LYF also has experience operating and working with major Canadian grocery chains, health and wellness retailers, and pharmacies.
With Valens’ access to low-cost cannabis extracts and LYF’s more than 100 recipes, the combination allows for higher-margin, new-to-market edible formats.
Valens has more than 77,000 square feet of manufacturing space, including the addition of LYF’s 10,500-square-foot nearby production facility. It’s capable of producing various new product formats, including real fruit gummies, caramel-filled bars, peanut butter cups, granola products, and baked goods.