Aurora Cannabis Snaps Up This Cultivator In $26.5M Expansion Play

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) has acquired Safari Flower Company in a deal valued at CA$26.5 million ($19.3 million), combining cash and shares.

The transaction includes CA$15 million in cash, issuance of 2,417,180 common shares, and a conditional $2 million payment, subject to closing conditions.

Why It Matters

The company is scaling production ahead of accelerating global demand, particularly in Europe.

The deal boosts Aurora’s footprint with a 59,000-square-foot EU GMP-certified indoor cultivation and manufacturing facility in Ontario, expanding its production capacity.

The Canadian cannabis giant plans to use the added capacity to supply key medical cannabis markets, including Germany, the UK, Australia, and Poland. It’s targeting high-margin international segments, where regulatory barriers like EU GMP certification limit competition.

“An enhanced supply chain will enable us to capture greater international market share while delivering superior quality and value to our most respected patients worldwide,” Miguel Martin, the company’s executive chairman and CEO, said.

What’s Next

The deal is expected to contribute positive adjusted EBITDA by fiscal 2027, with further upside as operations are optimized.

Aurora said it will leverage its plant science and operational expertise to improve yields and efficiency at the facility.

The deal is part of Aurora’s continued strategy that targets international medical markets, where higher margins and stricter regulations are reshaping competition among global cannabis producers.

The Background

Headquartered in Edmonton, Canada, Aurora cultivates and sells medicinal and recreational cannabis. It features a broad portfolio of brands and has a market cap of roughly CA$201.14 million ($146.37 million).

Over the past years, Aurora has shifted toward disciplined, smaller, targeted deals, focusing on EU GMP-certified production, international distribution, and medical cannabis positioning. While Canada remains a base, growth is increasingly driven by exports.

In 2024, the Aurora wrapped up the acquisition of the remaining stake in MedReleaf Australia in a deal valued roughly AUD$50 million.

In addition to building international distribution networks, Aurora has been boosting its production and deepening its presence.

Aurora has launched locally grown medical cannabis products in Germany under new cultivation licenses in 2025, including IndiMed and Daily Special brands.

On the domestic side, Aurora entered a strategic supply agreement with SNDL Inc. in 2025, reinforcing domestic and wholesale channels.

A Race to Build the International Stack

Aurora’s Safari deal didn’t happen in a vacuum — on the same day, Tilray announced the acquisition of UK-based Lyphe Group, a medical cannabis clinic and digital pharmacy platform, illustrating how operators are capturing the fast-growing European medical market upstream and downstream. Safari itself is a pure B2B operator serving German distributors Enua and Roobs and providing EU GMP services to third-party clients.

According to Zuanic & Associates, Aurora currently trades at just 0.7x EV/Sales and 3.8x EV/EBITDA on a current basis, leaving room for a well-executed acquisition to move the needle meaningfully if international volumes scale as projected. Zuanic carries a Neutral rating on ACB, signaling that execution on that supply chain buildout — not the deal itself — is what investors should be watching.

The competitive landscape is underscored by Organigram’s €107.3M acquisition of Sanity Group, which closed the same day: OGI pursued the deal to sell significantly greater volumes of higher-margin flower into Europe while capturing more of the value chain, with Sanity — already the #2 player in Germany — also providing a springboard into Switzerland, Poland, the UK, and Czechia, markets where Aurora’s IndiMed and Daily Special brands are competing for the same high-margin patient base.

ACB Price Action

Aurora’s shares traded 3.82% higher at $3.665 per share at the time of writing on Wednesday morning.