Is Acquiring Aurora Cannabis a Good Move for Curaleaf?
Key Points
Curaleaf has announced a hostile bid for Aurora Cannabis.
Aurora has a strong international presence, but it's had challenges with staying out of the red.
Aurora's stock has fallen significantly over the years.
- 10 stocks we like better than Curaleaf ›
Curaleaf Holdings (OTC: CURLF) has been aggressively pursuing Canadian-based cannabis producer Aurora Cannabis (NASDAQ: ACB) for well over a month. However, that hasn't been known to investors until recently, with Curaleaf now launching a hostile takeover attempt, as it claims Aurora hasn't been responding to its request for negotiation. "To date, Aurora has been unwilling to engage in constructive discussions," it states in its most recent press release.
Aurora Cannabis, however, has been a poor-performing stock, falling an incredible 95% over the past five years. It has struggled to generate much in the way of growth, and it's frequently in the red. Is this really a good move for Curaleaf?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
What does Curaleaf like about Aurora?
Aurora has been a big name in the Canadian cannabis market, but that's not really why Curaleaf likes the business. The Canadian market is, after all, highly saturated and competitive. Canadian producers are eager to find other opportunities because the margins are so thin and it's hard to turn a profit.
Instead, it's Aurora's international presence that Curaleaf sees as a huge incentive to buy the business. The company sees this as an opportunity to expand its opportunities in international markets, particularly in Europe, where it notes that Aurora has "more than 50 tons of annual EU-GMP cultivation and manufacturing capacity." Curaleaf has three EU-GMP certified facilities, as it's been eyeing international cannabis markets as well.
Curaleaf estimates that through the acquisition, it could achieve $40 million worth of annual cost synergies by combining forces with Aurora. The combined business, it calculates, would have generated $1.5 billion in revenue over the past 12 months and $350 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Is this a good move for Curaleaf?
Curaleaf is a leading multi-state operator and has a strong business. Buying Aurora Cannabis at a beaten-down valuation could be an effective way for it to quickly expand into international markets; the offer comes out to approximately $272 million. There is risk with Aurora given its underwhelming financial results, but it has gotten leaner over the years. There may be some challenges, as there always is with acquisitions, but I believe it could be a good move for Curaleaf, in its efforts to build a strong international cannabis business.
Its stock has also struggled, nosediving 73% over the past five years, but that's largely due to the broader industrywide challenges that have been weighing on cannabis stocks due to the lack of movement toward legalization in the U.S.
While a deal with Aurora is by no means a certainty, this is a positive sign that Curaleaf is looking to expand internationally and grow its presence. For growth investors who are willing to be patient and are comfortable with taking on some risk, Curaleaf could be a suitable stock to buy and hold.
Should you buy stock in Curaleaf right now?
Before you buy stock in Curaleaf, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Curaleaf wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 12, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
