Always Pure Organics accelerates European expansion

Always Pure Organics accelerates European expansion
Gavin Ogilvie, Always Pure Organics (R) and Joeri Perneel, DLH (L)

Cannabis wholesaler Always Pure Organics has completed its acquisition of Belgian cannabis companies Distribution Legal Hemp (DLH) and NexGen.

Funded by existing capital, Scotland-founded and Manchester-headquartered Always Pure Organics has taken 100% ownership of the Belgian company for £3m. The British company’s entrepreneurial founder-CEO, Gavin Ogilvie, will lead the company, and DLH/NexGen’s CEO, Joeri Perneel, will start in a newly created role as Always Pure Organics’ 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 Always Pure Organics, a top three wholesale and white label market leader in the UK, Japan, and Europe access to a much-needed distribution hub. With 80% of its client base in Europe, the post-Brexit acquisition enables Always Pure Organics to continue to offer its EU clients a quick and efficient supply service.

Powerful combination of B2B and B2C

DLH has their own successful B2C wellness retail brands, Pure CBD, Pet CBD, and market-leading tobacco substitute brands Sensy and Jane’s Garden and have direct access to multiple major retail chains selling tobacco substitute and wellness products across Europe.

The acquisition gives Always Pure Organics 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 which 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% to a 2021 forecast of £12.6m. Similarly, DLH grew 170% 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 CBD flower through their existing tobacco substitutes legislation, so by buying DLH we have instantly secured 75% of Belgium’s CBD flower market. It’s likely that France will also seek to regulate the CBD flower 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, said: “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 substitute 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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