Columbia Care, which holds cannabis licenses throughout the U.S. and Europe, has entered an agreement to acquire Colorado-based The Green Solution in a stock and note deal worth $140 million, the company announced on Tuesday. The deal will increase Columbia’s U.S. footprint to 93 total facilities, including 74 dispensaries and 19 cultivation facilities.
The Green Solution currently operates 21 dispensaries, with two under development, three indoor grows totaling more than 225,000 square feet, 16,000 square feet of greenhouse capacity, and a 140-acre outdoor cultivation complex. In 2018, Green Solution generated more than $73 million in revenues.
Kyle Speidell, co-president of The Green Solution, said that the firm had been approached “by nearly every serious operator” in the industry about a potential deal and that Columbia is the “ideal partner to trust with [the] family business.”
“This deal allows us to provide Colorado consumers with Columbia Care’s unique portfolio of pharmaceutical-quality products, and also enables us to quickly expand our TGS brands into 14 new U.S. jurisdictions. Additionally, we can now bring Columbia Care’s market-leading advancements, including its CNC credit card, home-delivery service and e-commerce capabilities, to our customers in Colorado, further improving the concierge experience and the exceptional standards of customer service that we have worked so hard to establish.” – Speidell, in a statement
Nicholas Vita, Columbia Care CEO, indicated it is the “first major acquisition” for the firm, adding that The Green Solution founders “built their company on the core principles of market depth, differentiated products, brands and capabilities, consumer satisfaction, and scalable infrastructure.”
“This transaction further advances Columbia Care’s promise to maximize shareholder return by making us even stronger, both financially and operationally, as we expect to see the majority of our existing markets transition to less regulated, legalized operating environments,” he said in a statement.
The terms of the deal include $110 million in Columbia Care stock, $15 million in secured debt, a $15 million seller’s note with the potential for an additional milestone payment in 2021. It still requires regulatory approval, which the firms expect next year.
Columbia reported $22.1 million in third-quarter revenue this year, which they say represents a 123 percent increase over the same period last year.
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