- A wholly-owned subsidiary of global cannabis company Cronos Group (TSX:CRON) signed a definitive agreement to acquire Netherlands-based CanAdelaar B.V., the largest adult-use cannabis company in Europe
- Cronos Group’s brand portfolio includes Spinach, PEACE NATURALS and Lord Jones
- Cronos Group stock has added 20.70 per cent year-over-year, while giving back 66.24 per cent since 2020
A wholly-owned subsidiary of global cannabis company Cronos Group (TSX:CRON) signed a definitive agreement to acquire Netherlands-based CanAdelaar B.V., the largest adult-use cannabis company in Europe.
Consideration stands at €57.5 million, or US$67 million, representing 1.4x last year’s revenue and 2.4x last year’s EBITDA, with additional consideration payable in cash based on 0.5x of CanAdelaar’s normalized EBITDA in 2026 and 2027.
CanAdelaar was founded in 2018 and received its license under the Wietexperiment, the Netherlands’ adult-use cannabis pilot program, in Q2 2023, operating out of a 540,000-square-foot facility in the Voorne aan Zee municipality capable of producing about 20,000 kilograms of dried flower per year.
The company supplies all 72 coffee shops within the Wietexperiment, making it the largest under the program, offering a product suite spanning flower, pre-rolls, hash and edibles branded under CanAdelaar Original Grow or C.O.G.
CanAdelaar generated revenue of US$17.7 million and EBITDA of US$8 million in 2024, growing to US$47.3 million and US$28.2 million, respectively, in the year ending September 30, 2025.
Cronos views the acquisition as a synergistic one that will strengthen its global leadership position, which includes established presences in Canada, Europe, Australia and Israel. Key factors include:
- The Wietexperiment’s legalization of certain edibles, vapes, pre-rolls and hash, allowing the company to monetize its expertise in cannabis genetics, research and product development.
- CanAdelaar’s differentiated value proposition stemming from being the only industrial scale greenhouse cultivator among the Netherlands’ 10 licensed producers.
- Potential Wietexperiment expansion, given that the program covers only 72 of the Netherlands’ 562 coffee shops.
The CanAdelaar acquisition is expected to close in early 2026, subject to regulatory clearance in the Netherlands, positioning Cronos to capitalize on the majority of the Wietexperiment’s initial phase, which launched on April 7, 2025, and will run for four years from that date, with the Dutch government holding an option to extend the program by up to 18 months.
Cronos has more than doubled revenue from US$64 million in 2021 to US$132 million over the trailing twelve months, supporting this growing market share with a recent ascent into profitability, delivering US$41 million in net income in 2024 and US$36 million over the trailing twelve months, painting an optimistic picture about CanAdelaar’s potential to unlock value.
Management commentary
“Our acquisition of CanAdelaar is a financially compelling and highly strategic transaction that will establish a strategic footprint in Europe and enable us to leverage our investments in borderless products,” Mike Gorenstein, chairman, president and chief executive officer of Cronos Group, said in Tuesday’s news release. “The Netherlands has a deep cannabis heritage, and its coffee shops are known worldwide to have played a foundational role in the evolution of the legal cannabis industry. European expansion is an important area of focus for us, and we were especially intrigued that the Netherlands legislated and established a responsible and well-functioning adult-use cannabis market with the Wietexperiment. We are excited to work with the Dutch government, regulators, coffee shops, adult consumers and all stakeholders to make the Wietexperiment a continued success. CanAdelaar’s management team has rapidly and efficiently scaled the business into a clear market leader in Europe’s largest adult-use cannabis market. This makes it an ideal fit for our borderless product strategy, as we seek to build upon the strong foundation that CanAdelaar has developed.”
About Cronos Group
Cronos is a cannabis company focused on research, technology and product development. Its brand portfolio includes Spinach, PEACE NATURALS and Lord Jones.
Cronos Group stock (TSX:CRON) last traded at C$3.44, adding 20.70 per cent year-over-year, while giving back 66.24 per cent since 2020.
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