Tag: acquisition

  • BAT Ups Investment in Organigram

    BAT Ups Investment in Organigram

    Credit: Roxxy Photos

    Organigram Holdings Inc. has extended its relationship with British American Tobacco. The move boosts the Canadian cannabis producer’s financial strength and positioning it to expand globally.

    Organigram said in a statement that BAT is investing a further $90.5 million in the business, building on an initial $160 million injection back in 2021.

    Organigram said the investment will allow it to extend its footprint beyond Canada, and also strengthen its financial position for long-term, sustainable growth, according to media reports.

    “This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company,” said Beena Goldenberg, chief executive of Organigram.

    The firm said the deal enables it to invest in growing the topline of its core business, while optimizing operations to deliver on cost-saving efficiencies, thus accelerating earnings growth.

    Organigram will use the majority of the investment to create a strategic investment pool, named Jupiter.

    Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets, it said.

  • Hauni acquires Borgwaldt

    Hauni Maschinenbau is acquiring the Borgwaldt Group, a supplier of measurement/analysis equipment and flavors for cigarette and filter production. Based in Hamburg, Germany, the Borgwaldt Group has around 150 employees worldwide.

    “We are delighted to welcome a globally recognized technology specialist with Borgwaldt Group as the youngest member of the Hauni family,” said Christopher Somm, chairman of Hauni’s executive board.

    Borgwaldt’s “longstanding specialist expertise in the field of physical measurement equipment and smoking machines dovetails perfectly with our product portfolio,” he added. “Using the Borgwaldt brand we shall jointly continue to expand our analysis activities alongside our French subsidiary Sodim. Hauni will also benefit from having a new flavor business unit. This will boost our expertise in our capacity as an international tobacco industry supplier.”

    The Borgwaldt Group’s companies will become part of Hauni Maschinenbau with immediate effect. The companies will remain separate legal entities. Borgwaldt’s existing management team will continue to be responsible for the development of the business.

    The customer contacts at Borgwaldt will also remain in place. They will continue to be responsible for handling the business, including services.

    “With Hauni we have found a strong partner, which will open up new growth opportunities for us,” said Insa Briel, managing director of the Borgwaldt Group.

    Hauni is a global supplier, headquartered in Hamburg, Germany, of tobacco machinery and related services to the tobacco industry. A member of the Körber Group, the company employs about 4,000 people worldwide. In 2011, it generated sales of about €800 million ($1.04 billion).