U.S. marijuana multistate operator Curaleaf Holdings signed a deal to acquire a 55% stake in German medical cannabis producer and distributor Four 20 Pharma.
Curaleaf’s strategic partnership with Four 20 allows it “to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany,” according to a news release.
The deal is worth 19.7 million euros ($20.4 million), according to a regulatory filing.
Four 20 has more than 10% market share in Germany’s existing medical cannabis market, Curaleaf said.
Germany has started the process of legalizing recreational cannabis, but many key details about the future market remain in question.
Curaleaf estimated that the German market could be worth nearly 1 billion euros by the end of 2024 following adult-use legalization.
The Massachusetts-based MSO acquired European medical marijuana company Emmac Life Sciences last year.
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Curaleaf expects the deal with Four 20 to close within two months, pending regulatory approvals.
Shares of Curaleaf trade as CURA on the Canadian Securities Exchange.