TILT Holdings Agrees to Acquire Jupiter Research For $210 Million

TILT Holdings Agrees to Acquire Jupiter Research For $210 Million

Jupiter Research’s proprietary inhalation technology improvements and diversifies TILT’s comprehensive portfolio of cannabis solutions across the supply chain

Jupiter is among the largest companies in the cannabis industry to be obtained, profitably booking US$105M in orders in 2018, with approximately 20 percent EBIDTA margins

The Company signed a definitive agreement on January 2nd to acquire Jupiter Research for US$210 million to bolster TILT’s hardware offerings.

Jupiter Research, based in 2015 by prior NJOY product programmer Mark Scatterday and Bob Crompton, is leading the charge from the multibillion-dollar sector of vaporization. Scatterday, Jupiter’s President, said, “Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading edge to deliver innovative high-tech technologies into the cannabis industry. ”

Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology. Jupiter’s group with years of combined experience in vaporization partners with more than 700 brands and cannabis retailers across the U.S., Canada, Israel and the E.U. Jupiter generated approximately US$77M in 2018 earnings with an estimated 20 percent EBIDTA margin, and already has US$28M in booked orders entering Q1.

“Our acquisition of Jupiter Research is paramount to our aim of consolidating and centralizing services for all business verticals: cultivation, manufacturing and retail,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this class will be unparalleled. ”

Crompton added, “Jupiter Research’s monthly sales continue to increase 15 per month over month, and we already have US$28M of booked orders entering Q1. The opportunity to combine the synergies of the TILT portfolio of businesses is expected to add to our rapid growth. ”

Consideration for the Jupiter purchase is US$210M, consisting of US$70M cash and 56,116,723 common shares of TILT. The date for the closing of the acquisition is January 31, 2019.

More information about TILT’s other recent acquisitions and moves inside the cannabis industry can be found here.

About TILT

TILT Holdings Inc. is a vertically-integrated technology and infrastructure platform delivering the most comprehensive range of products and services across the cannabis industry. TILT strives to deliver the highest quality services and products through knowledge-based technology systems for both businesses and consumers. TILT technology has a presence in more than 1,000 dispensaries across the U.S., Canada, Puerto Rico and Jamaica. For more information, please see www.tiltholdings.com.

SOURCE

Published at Thu, 03 Jan 2019 19:28:20 +0000

Posted in: News

Comments are closed.