Canopy Growth to sell Smiths Falls facility back to Hershey Canada for $53M
Posted Aug 17, 2023 01:20:33 PM.
Last Updated Aug 18, 2023 04:39:39 PM.
It looks like Hershey Canada is making a return to Smiths Falls.
Canopy Growth Corporation said it has entered into an agreement to sell its 1 Hershey Drive facility back to Hershey Canada, its original owner, for $53 million. However, the company will retain its Smiths Falls-based post-harvest manufacturing facility located at 99 Lorne St., which has a regional distribution centre, bottling facility and beverage capabilities.
“We are pleased to have reached an agreement with Hershey on this important sale,” said Canopy Growth chief executive officer (CEO) David Klein. “This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet. Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk.”
The sale, which is still subject to closing conditions, would mark a total of seven properties sold by Canopy Growth for an aggregate gross amount of approximately $155 million since April 1, 2023.
Hershey Canada said the purchase is a strategic investment to support its company’s growth in Canada.
“Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” said Jason Reiman, chief supply chain officer, The Hershey Company.
Smiths Falls Mayor Shawn Pankow tells CityNews Ottawa that he can’t think of a better news story for his town.
“Well, I hardly slept last night. We had a couple of meetings yesterday with both Canopy and Hershey, so they announced it was coming, and we’ve been anticipating this for quite a while. It’s incredibly positive news for our community,” said Pankow.
The property, which had been vacant since earlier this year, had residents speculating what would take its place, and many believed the Hershey Company would come back to Smiths Falls.
Hershey Canada operated out of Smiths Falls between 1963 and 2008, when the company moved production to Mexico.
