CEA Industries is providing an update on its previously announced acquisition of Fat Panda Ltd.
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. Fat Panda 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. Based on preliminary, unaudited financials, in its fiscal 2024, Fat Panda generated CAD $38.5 million (USD $28.5 million) in revenue with 39% gross margins and CAD $8.4 million (USD $6.2 million) in adjusted EBITDA. Both revenue and adjusted EBITDA grew over 10% from fiscal 2023 while gross margin declined by 15% from fiscal 2023.
"We are making steady progress on our acquisition of Fat Panda and we are excited to finalize this transformative step in our strategic evolution," said Tony McDonald, Chairman and CEO of CEA Industries. "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."
The Company continues to expect to complete the acquisition in the first half of 2025, subject to certain customary closing conditions described below.
For more information:
CEA Industries
www.ceaindustries.com