BOCA RATON, Fla. and CYPRESS, Calif. – Global house of brands Greenlane Holdings, Inc. and cannabis ancillary leader KushCo Holdings, Inc. entered into a definitive merger agreement wherein KushCo will become a wholly owned subsidiary of Greenlane. The transaction brings together two of the industry’s longest-running ancillary product and services companies, with more than twenty-five years of combined operational history. The combined company expects to generate more than $310 million in revenue in 2021.
“We’re incredibly excited to be able to merge Greenlane with KushCo, establishing one of the leading ancillary companies in the cannabis space,” Greenlane co-founder and Chief Executive Officer Aaron LoCascio told mg. “This transformative transaction will deliver more value to our millions of customers across the supply chain. Additionally, with federal legalization becoming more of a possibility by the day, and with the big legalization news coming out of New York today, there has never been a better time for Greenlane to enhance its standing in the marketplace as the premier and leading ancillary cannabis company in the world.”
“As an industry leader, the combined company will be well positioned to grow profitability and maximize value for all stockholders, while also providing enhanced product offerings and expanded ancillary services to our valued customer bases,” added KushCo co-founder and Chief Executive Officer Nick Kovacevish.
With the merger, KushCo and Greenlane will increase their shared customer base to include a majority of the top dispensaries in the United States, many of the industry’s leading multi-state-operators and Canadian licensed producers, and millions of consumers.
“Both Greenlane’s and KushCo’s product offerings and customers complement each other very well, allowing for tremendous cross-selling opportunities,” said Kovacevish. “Whereas KushCo has excelled in serving the upstream market of growers, processors, and brands, Greenlane has done a phenomenal job building out its downstream market of retail and direct-to-consumer channels. We look forward to tapping into our combined twenty-five years of experience, robust combined knowledge, deep product development expertise, and solid relationships with key vendors to continue delivering innovative product solutions to businesses and consumer clients globally.”
Post-merger, LoCascio will serve as president for the combined company while Kovacevich will assume the role of chief executive officer. Greenlane’s Bill Mote and Adam Schoenfeld will serve as chief financial officer and chief strategy officer, respectively. The company will be headquartered in Boca Raton, Florida.