Hershey reacquires Ontario facility from Canopy Growth
By Food in Canada StaffBusiness Operations Confectionery Canopy Growth Editor pick Hershey Canada Ontario
Canopy Growth sells its Hershey Drive facility in Smiths Falls, Ont., as part of the company’s plan to become a simplified, asset-light operating business. Canopy Growth will retain its Smiths Falls-based post-harvest manufacturing facility.
Pursuant to the terms of the agreement, the facility will be sold to Hershey Canada for approximately $53 million.
“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” said David Klein, CEO Canopy Growth.
“Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” said Jason Reiman, chief supply chain officer, the Hershey Company.
Upon the completion of the transaction, Canopy Growth will have sold seven properties for an aggregate gross amount of approximately $155 million since April 1, 2023. Net proceeds received from the sale of the facility will be used primarily to pay down the company’s senior secured credit facility.
The sale of the facility follows the centralization of post-harvest manufacturing at the company’s former beverage facility in Smiths Falls, as well as the consolidation of all flower cultivation in the company’s purpose-built sites in Kincardine, Ont., and Kelowna, B.C.
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