A major alcohol conglomerate has agreed to buy almost 10 per cent of Canada`s biggest marijuana company for $245 million Cdn.
New York-based Constellation Brands will buy up to 18.9 million shares in Canopy Growth Corporation, the Tweed, Ont.-based company that has grown to quickly become Canada`s largest marijuana company.
As part of the deal, Constellation will provide marketing and brand development support to Canopy. The two companies will work together to produce marijuana-based drinks.
Constellation owns distribution rights to more than 100 brand names of alcoholic products, including Mondavi, Ruffino and Corona.
“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” Canopy CEO Bruce Linton said. “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”
The deal also gives Constellation the option to purchase an additional ownership interest in the future