Glass House: Adds another top brand

Glass House Group announced the acquisition of PLUS. This is a top gummies brand and a top 5 edibles brand in California. This a great buy. GHG management has said that in the GHG owned retail stores, the company sells its branded product multiple times more than to non-GHG owned retail stores. Now you add another brand to the GHG portfolio. If management is able to apply the same increase for in-store sales, then you have an acquisition that will do really well for the company.

In 2020, PLUS reported $15.9M. In Q2 ’21, PLUS shows $4.83M of sales. Q1 ’21, PLUS shows $2.5M of sales. The Q1 ’21 numbers are impacted by a one-time accounting change. GHG is paying a little more than 1x sales for this acquisition. Seems like a really good deal, if GHG is able to increase the sales of these products in the GHG owned stores. (PLUS also had $6.6M in cash at the end of quarter. Although the amount of cash at acquisition is something we don’t know).

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