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British cannabis pioneer Always Pure Organics acquires European start-up

The £3 million deal will accelerate the firm’s European expansion

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Gavin Ogilvie, CEO of Always Pure Organics (right) with DLH’s CEO, Joeri Perneel

British cannabis firm Always Pure Organics has acquired Belgian-based start-up Distribution Legal Hemp, accelerating its European expansion.

The pioneering and market-leading cannabis wholesaler, Always Pure Organics (APO) has completed its acquisition of the successful Belgian cannabis companies, Distribution Legal Hemp and NexGen for £3 million.

Funded by existing capital, Scotland-founded and Manchester-headquartered APO takes 100 per cent ownership of the Belgian company.

With no personnel churn, the British company’s entrepreneurial founder-CEO, Gavin Ogilvie, will helm the enlarged company, and DLH/NexGen’s CEO, Joeri Perneel, will start in a newly created role as APO’s chief commercial officer, whilst retaining a focus on the companies’ activities in the Benelux and French markets. 

Better access to EU clients

The purchase gives APO, a top-three wholesale and white label market leader in the UK, Japan, and Europe access to a much-needed distribution hub. With 80 per cent of its client base in Europe, the post-Brexit acquisition enables APO to continue to offer its EU clients a quick and efficient supply service. 

The powerful combination of B2B and B2C

While APO is a B2B business, providing wholesale and white label products to a who’s who of Europe’s top High Street retailers and lifestyle brands, DLH has their own successful B2C wellness retail brands, Pure CBD, Pet CBD and market-leading tobacco substitute brands Sensy and Jane’s Garden.

They also have direct access to multiple major retail chains selling tobacco substitute and wellness products across Europe. The acquisition gives APO a strong foothold to build market share in the fast-growing CBD industry’s European retail sector.

DLH will benefit from becoming part of a larger, global-facing company that has the capacity to upgrade infrastructure and operating systems and increase workforce opportunities at the Belgian base. APO also has best in class experts in sales, administration, manufacturing and logistics. 

Strong growth

Over the past two years, both companies have grown incredibly fast. APO has increased staff from six to 62 and in the past year alone grown its revenues 215 per cent to a 2021 forecast of £12.6m. Similarly, DLH grew 170 per cent in the past year. 

Gavin Ogilvie, CEO of Always Pure Organics, said: “As part of our ambitious global expansion plans, DLH gives us a brilliant complementary business. Belgium is the first nation in Europe to legalise the use of tobacco substitutes through their existing tobacco substitutes legislation, so by buying DLH we have instantly secured 75% of Belgium’s tobacco substitutes market. It’s likely that France will also seek to regulate the tobacco substitutes through the same legal mechanism before long, and APO will therefore be in a strong strategic position to take full advantage of this new market when it opens.”

DLH’s CEO, Joeri Perneel added: “Both companies have known each other and worked together for more than two years. The deal is on all levels complementary. DLH/NexGen is the market leader in Belgium within the segment of tobacco substitutes and is a pioneer in the segment of wellness. We are only at the beginning of the journey and I’m happy to work with APO to build this new group into a world-class player.”

 

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