Employees at cannabis producer The Valens Company face cuts
Published on January 20, 2023 by David Wylie
Expect job cuts at The Valens Company and its subsidiaries as new owner, SNDL, looks to save millions of dollars in “synergies.”
SNDL has officially acquired Valens in an all-stock deal worth about $138 million.
It also took on the company’s $60 million in debt.
Valens employs a large number of people at its two manufacturing facilities in the Jim Bailey industrial area located on the border of Lake Country and Kelowna.
• RELATED: Extensive coverage of The Valens Company on the oz.
SNDL says it expects to find more than $10 million of annual cost synergies, adding in a news release that it expects to give updates on “synergies” in future quarters.
“With the close of this transaction, we will focus on integrating our assets and teams while delivering both cost synergies and incremental revenue from greater distribution of Valens products,” says SNDL CEO Zach George.
Calgary-based SNDL also takes ownership of a beverage facility in Ontario, as well as CBD gummy company Green Roads in the US.
The deal gives SNDL, one of the country’s major retailers, wide-scale white label manufacturing capability to make and sell in-house brands.
SNDL has 180 retail stores under its banner, including Spiritleaf and Value Buds stores.
SNDL trades on Nasdaq under the symbol “SNDL.”
Its cannabis brand portfolio includes Top Leaf, Contraband, Citizen Stash, Sundial Cannabis, Palmetto, Bon Jak, Spiritleaf Selects, Versus Cannabis, Value Buds, Vacay and Grasslands.
It’s the largest private-sector liquor and cannabis retailer in Canada with retail banners that include Ace Liquor, Wine and Beyond, and Liquor Depot.
Valens CEO and founder Tyler Robson will take on a role as president of cannabis at SNDL.
This story is cross-posted from okanaganz.com.