CEA Industries Inc. has completed its CAD $18 million ($12.6 million) acquisition of Fat Panda Ltd., Canada’s largest independent vape retailer and manufacturer. The deal provides CEA with a profitable foothold in the regulated nicotine market, with Fat Panda generating nearly CAD $38.5 million ($28.1 million) in annual revenue and holding more than 50% market share in central Canada.
“This acquisition marks a significant milestone for CEA as we expand into a dynamic, high-growth regulated vertical benefiting from strong consumer demand,” said Tony McDonald, Chairman and CEO of CEA Industries. “Fat Panda brings an established brand, experienced leadership, and a highly profitable operating model that can be rapidly scaled with our capital and strategic support. Importantly, this acquisition exemplifies our commitment to identifying accretive opportunities that can unlock meaningful long-term value for our shareholders.”
Fat Panda will retain its leadership and branding during the integration.