Organigram Pays €250M for Sanity Group, Securing Berlin Cannabis Hub
Organigram will pay up to €250 million (including €113.4 million upfront and €113.8 million earn-out) for German medical cannabis producer Sanity Group, whose revenue more than tripled to €60 million in 2025. Organigram gains a Berlin hub, positioning it in Germany’s €4.5 billion cannabis market.
1. Acquisition Details
Organigram has agreed to acquire Sanity Group for up to €250 million, consisting of €113.4 million upfront and up to €113.8 million in performance-based earn-outs tied to future financial targets.
2. Strategic Expansion
The transaction provides Organigram with Berlin-based cultivation and distribution infrastructure, intended as a hub for EU growth, including planned pilot operations in Switzerland and preparation for commercial sales in Germany.
3. Financial Metrics
Sanity Group’s revenue more than tripled to €60 million in 2025, underscoring strength in Germany’s medicinal cannabis segment, which is projected to reach €4.5 billion by 2028.
4. Investment and Competition
British American Tobacco contributed over CAD 65 million to fund the deal and will place an executive at Sanity Group, while Organigram positions itself against competitors like Aurora Cannabis for global market share.