Greenlane Holdings, Inc. (NASDAQ:GNLN) announced Tuesday that it had entered into a definitive agreement to acquire DaVinci, a leading developer and manufacturer of premium portable vaporizers. The terms of the deal were not disclosed.
DaVinci is known for its Clean First innovation, which employs medical-grade materials and total quality manufacturing processes to ensure that
the cleanest technology goes into the development of its products. The company's product portfolio notably expanded since the launch of its award-winning IQ vaporizer in 2016. Other products include innovative models such as the MIQRO, the world's smallest premium loose-leaf vaporizer, IQ2, the world's first on-device dosage control, and the IQC, equipped with a patented ShareSafe mouthpiece created from an FDA-approved antimicrobial polymer.
"DaVinci leads the way in innovative portable vaporizers and we are thrilled to bring them into our owned brand portfolio," Nick Kovacevich, CEO of Greenlane stated. "This acquisition perfectly illustrates our mission of elevating all elements of the consumption experience, and we look forward to building on our recent success of acquiring strategic and accretive brands. As we continue to execute on our robust pipeline of acquisition targets, we aim to ensure our customers have a best-in-class product selection, while driving profitability and shareholder value by increasing our higher-margin owned brand offerings. The team at DaVinci shares our commitment to providing curated, convenient experiences to consumers, and we look forward to welcoming them to Greenlane and to working together to bring more innovative products to our customers."
The acquisition, subject to customary closing conditions, is expected to close in the fourth quarter of 2021. Upon completion, it is expected to be immediately accretive to Greenlane's revenue and earnings.
"At DaVinci we have been committed to approaching product development with vision and imagination, and we are thrilled to join Greenlane as strong partners in innovation,” Cortney Smith, founder and CEO of DaVinci said in a statement. “We are excited to join a team that shares our drive to harness new and changing technologies to engineer consumer experiences that align with the evolving needs of a dynamic, growing cannabis industry."
Morrison & Foerster LLP is acting as legal counsel to Greenlane. Hyperion Capital Inc. is acting as the exclusive financial advisor to DaVinci. Alliance Legal Partners, Inc. and Ballard Spahr LLP are acting as legal counsels to DaVinci.
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Greenlane’s shares were trading 1.11% lower at $2.24 per share at the time of writing Tuesday morning.