Greenlane Holdings Inc. (NASDAQ: GNLN) has announced the completion of the previously announced DaVinci acquisition. DaVinci is a top developer and producer of high-quality portable vaporizers. 

DaVinci to generate revenue of $12 million in 2021

In 2021, DaVinci is predicted to generate revenues of around $12 million and gross margins of 60%. Greenlane’s sales and earnings are expected to increase immediately due to this acquisition. Subject to achievement of particular results-bases earnouts, the total value for the transaction might be around $20 million in cash and shares. 

Greenlane CEO Nick Kovacevich said We are thrilled to complete yet another acquisition of a high-margin, fast-growing, and innovative ancillary brand that significantly enhances our proprietary brand’s portfolio. DaVinci has been an outstanding partner for us over the years, and we are excited to now have them officially join Greenlane as our proprietary vaporizer brand. Even more exciting is the fact that we acquired the business at less than two times sales on the high end, which we believe is a fair multiple for a high-margin business that will be immediately accretive to our top and bottom line.”

Acquisition part of Greenlane’s strategy to expand product portfolio 

“This acquisition is part of our broader strategy to expand our product offerings, market share, revenue, margins, and profitability by scaling our portfolio of proprietary owned brands. Not only do we expect this strategy to help us enhance margins and profitability, but we believe it also expands our strategic defensive moat and positions us for rapid global expansion without any major catalysts, such as federal legalization. This strategy becomes even more attractive when considering that virtually no other company is building a house of brands on the ancillary non-plant-touching side. Overall, we are pleased to have completed this acquisition for a leading brand, and even more so, to continue to make incremental progress on our Greenlane Brands revenue targets for 2022 and 2023,” added Kovacevich.

Greenlane operates and owns a range of brand portfolios, including the K. Haring Glass Collection, Pollen Gear, DaVinci, VIBES, and Marley Natural.

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