Village Farms has officially closed the deal to spin off its U.S. produce business, finalizing its transformation into a cannabis-first company.
The company announced the closure of the transaction on May 30, with its fresh produce operations now folded into Vanguard Food LP, a joint venture backed by private equity and led by produce veteran Charlie Sweat. As part of the deal, Village Farms walks away with $40 million in cash and a minority stake in Vanguard, but without day-to-day responsibilities.
“This marks the beginning of an exciting new chapter for Village Farms,” said CEO Michael DeGiglio. “We are ready to move forward independently from produce.”
This move was first announced earlier this year as a strategic play to monetize non-core greenhouse assets and double down on cannabis. With the transaction now complete, Village Farms emerges with 160 acres of advanced greenhouse infrastructure under its belt, including its core Monahans facility in Texas and three Canadian greenhouses in British Columbia, and a sharpened focus on global cannabis growth.
The company highlighted three core pillars for its next chapter: increased international exposure through export operations and Dutch assets; a streamlined cannabis-focused team built from decades of CEA experience; and ongoing upside potential through its stake in Vanguard.
While the Canadian side of the business continues to balance cannabis and vegetables, long-term supply agreements with Vanguard mean Village Farms can retain that revenue stream while shifting capital and energy toward cannabis. With U.S. reform still uncertain, keeping strategic greenhouse real estate, like the leased Marfa I site, provides optionality.
“We’ve built a cannabis business on the back of 35 years in agriculture,” DeGiglio added. “Now we’re investing the time and resources to become one of the world’s most respected cannabis operators.”
For more information:
Village Farms International Inc.
Tel.: +1 (407) 936-1190
villagefarms.com
Village Farms has officially closed the deal to spin off its U.S. produce business, finalizing its transformation into a cannabis-first company. The company announced the closure of the… Read More
