CEA Industries reports ‘steady progress’ on acquisition of Winnipeg vape company

LOUISVILLE — The head of Louisville-based CEA Industries Inc. (Nasdaq: CEAD) says the company is “making steady progress” on its acquisition of Fat Panda Ltd., a retailer and manufacturer of nicotine vape products based in Winnipeg, Manitoba.

Fat Panda is central Canada’s largest retailer and manufacturer of e-cigarettes, vape devices, and e-liquids, with 33 retail locations across Manitoba, Ontario and Saskatchewan. It also operates its own e-commerce platform and offers a comprehensive product lineup, including in-house premium e-liquids and a portfolio of trademarks and intellectual property.

“We are making steady progress on our acquisition of Fat Panda and we are excited to finalize this transformative step in our strategic evolution,” Tony McDonald, chairman and CEO, of CEA Industries, in a prepared statement. “As a long-time participant in the Canadian market, we view this transaction as a pivotal entry into the high-growth vape industry, anchored by Fat Panda’s market leadership, large retail network, vertically integrated operations and outstanding management team that is staying with the business.

“With a proven track record of strong financial performance and recent double-digit growth, we believe the combination of our resources with Fat Panda’s strong foundation will accelerate expansion and unlock long-term value creation for our shareholders.”

Based on preliminary, unaudited financials and expressed in U.S. dollars, in its fiscal 2024, Fat Panda generated $28.5 million  in revenue with 39% gross margins and $6.2 million in adjusted EBITDA. Both revenue and adjusted EBITDA grew more than 10% from fiscal 2023 while gross margin declined by 15% from fiscal 2023.

CEA continues to expect to complete the acquisition in the first half of this year, subject to certain customary closing conditions.

on Facebook on LinkedIn