The company announced today that it has successfully closed the acquisition, which received approval from the Ontario Superior Court of Justice on Dec. 20, 2022. Superette Group sought protection under the Companies’ Creditors Arrangement Act (CCAA) in September in response to Canadian market contraction and consolidation.
“We are pleased with the conclusion of the CCAA proceedings and are excited by the opportunity to bring stability to the Superette Group’s business,” SNDL CEO Zach George said. “As industry challenges persist, we see strategic opportunities to grow our retail banners through M&A activity where appropriate within our cannabis retail portfolio.”
George highlighted Superette’s “creative approach to retail and experiential and community-based marketing initiatives” as factors in pursuing the acquisition.
“The SNDL team is delighted to welcome the Superette brand to further enhance our cannabis retail operations and offerings while increasing our exposure in the Ontario market,” he said.
Superette sells private-label cannabis and noncannabis branded merchandise in stores with aesthetics that capture the minutiae of every-day retail environments. On Twitter, it pitches its stores as “flower shops for adults with good taste.”
SNDL had the shares of Superette Ontario transferred to Spirit Leaf so that it could, in turn, purchase all of the shares off Spirit Leaf.
The five Superette retail locations in Toronto and Ottawa were transferred back to Superette Ontario to help fund operations, and Superette’s intellectual property was transferred to SNDL directly. SNDL will license some of Superette’s IP to Spirit Leaf Ontario for their retail locations, the company said.
SNDL said that the Superette stores are “complementary to SNDL’s current cannabis retail and margin strategy and provide a differentiated retail experience to enhance the company’s market coverage and consumer reach.”
SNDL expects to carry on the Superette banner, which “will benefit from SNDL’s shared service model to provide for cost-effective operational support,” the company said.