Hemp Industry Outlook: Start-ups, Mergers & Acquisitions Abound

Three months since passage of the Agriculture Improvement Act of 2018 (2018 Farm Bill), companies looking to expand their footprint in the industry have started diving into the federally legal U.S. hemp market through start-ups or mergers and acquisitions (M&A).

Most recently, Canada’s second-largest cannabis producer, Tilray, Inc. (NASDAQ: TLRY), last month furthered its growth strategy by acquiring Manitoba Harvest, the world’s largest hemp foods manufacturer. It bought the Winnipeg, Canada-based company from Compass Group Diversified Holdings (NYSE: CODI) and other shareholders of Manitoba Harvest, for CAD $419 million (USD $317 million) in cash and Tilray stock, plus up to an additional CAD $49 million (USD $37 million) in Tilray shares after Manitoba Harvest hits certain 2019 benchmark incentives. The Manitoba Harvest deal piggybacks on a December 2018 partnership entered into between Tilray and Anheuser-Bush InBev(NYSE: BUD), the world’s largest brewer, to research cannabis-infused beverages through a $100 million joint venture.

Read the full article on newfrontierdata.com.