Ancillary cannabis business Agrify said it acquired two marijuana- and hemp-related equipment and services brands from Sinclair Scientific for at least $50 million.
The acquired brands are:
- Precision Extraction Solutions, described as “the industry leader in cannabis and hemp extraction equipment, technology, lab design and site planning.”
- Cascade Sciences, which produces processing equipment such as vacuum ovens and evaporators.
“These leading brands have collectively worked with over 30 multi-state operators and over a thousand cannabis and hemp customers,” Agrify said in a Monday night news release.
Agrify said it expects the acquired brands to generate roughly $40 million in revenue in 2021.
“As a result of this transaction, Agrify now has a physical presence in seven states with a growing number of clients and business partners distributed throughout the country.”
The $50 million acquisition includes $30 million in cash and $20 million of Agrify stock.
The price might increase to up to $65 million based on Cascade and Precision’s performance for 2021.
Billerica, Massachusetts-based Agrify produces hardware and software for use in cannabis cultivation and other crops.
Agrify shares trade as AGFY on the Nasdaq exchange.