Gibraltar Industries Expands Cannabis Extraction Operations with $50 Million Cash Acquisition of Delta Separations

In October, Gibraltar Industries (NASDAQ: ROCK) purchased CO2 extraction company Apeks Supercritical, paying $12.55 million for the Ohio-based company that reported trailing annual revenue through June 2019 of $17.7 million. This move extended the company’s involvement in the cannabis industry, where it has also worked on green house facilities.

On February 14th, the company revealed an even larger acquisition of California-based Delta Separations, paying $50 million cash for the privately-held manufacturer of ethanol-based extraction systems. Gibraltar disclsoed that the acquired company generated 2019 revenue of $46 million.

As Gibraltar’s second acquisition in the processing market, Delta Separations’ leadership position in ethanol-based extraction technology combined with Apeks’ leadership position in CO2 extraction technology expands our offering as we work with customers to shape the future of this market. The combination of Apeks and Delta will support our customers regardless of their technology and systems preference. 

Gibraltar Chief Executive Officer Bill Bosway

Delta has a strong management team, is a true leader in this market with an incredible passion for its business, and our future together. We will continue to build our presence and relevance with our customers accordingly.

In addition to Delta, Gibraltar acquired Teaching Tech, which is a separate company that provides training to Delta customers. According to the company’s website, Delta was founded in 2015 and has been headed by CEO Roger Cockroft and Founder/CTO Ben Stephens. Gibraltar plans to retain substantially all employees and to change the name of Teaching Tech, according to the asset purchase agreement.

Delta Separations CUP-30 Closed-Loop Alcohol Extraction System

According to the company’s website, it sells agitation, chilling, extraction, evaporation and distillation equipment as well as modular processing labs.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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