Bridge Farm Group, the Lincolnshire producer of ornamental plant, flowers and herbs, is splitting off from its former parent company, Sundial Growers UK, a subsidiary of the global cannabis producer, Sundial Growers Inc. and will be 100% acquired by a newly-formed entity controlled by representatives of Artemis Growth Partners, a private investment firm.
The total transaction value for Bridge Farm Group was $105 million (Canadian). The acquisition ranks as the largest sponsor-driven European M&A transaction in history for cannabis and cannabis-related companies, and represents the largest M&A deal of 2020 in Europe for the horticulture and farming industry.
The sale of Bridge Farm to Artemis Growth Partners follows previously announced plans by Sundial to sell the Company as part of its strategy to reduce its debt and restructure its balance sheet.
David Ball, operating partner and senior advisor at Artemis Growth Partners said: “Bridge Farm is a forward-thinking, large scale producer of commercial horticultural produce that has been operating for over 30 years and is led by a proven and award-winning management team. I am delighted that we could close a transaction involving a business that I have known and run as a former CEO, and will now oversee at Artemis as an investment in our portfolio.
“Bridge Farm is the low-cost cultivation platform in the UK for cannabis with over 2 million square feet of the most technologically advanced, automated glasshouse production in all of Europe. We see Bridge Farm as the cornerstone of a vertically integrated global producer of cannabis and other medicinal botanicals with future offerings ranging from cannabis flower and concentrates, as well as other essential oil and phytomedicinal extracts, into a wide range of plant-based branded and wholesale health and wellness products.
“Bridge Farm represents not only a company with deep ties to its community, its vendors, its customers, and its employees, but also an organization that is wholly-focused on driving principles of inclusion, developing and implementing regenerative business practices, and providing health and wellness leadership for a better society today and into the future. These values are what we hold close at Artemis and we are delighted that through this transaction we are able to provide stability to the company and a platform for its growth.”
Clearwater International, KPMG and Browne Jacobson LLP advised the UK transaction team with Pierce Atwood LLP and Davies Ward Phillips & Vineberg LLP advising the North American transaction team on the acquisition of Bridge Farm Group from Sundial Growers UK Ltd, a subsidiary of Sundial Growers Inc.