Chicago, Illinois-based Cresco Labs last week completed its $90 million takeover of Massachusetts’ Cultivate. Charlie Bachtell, CEO and co-founder of Cresco said the deal “constitutes another important step” for the company as it deepens its “presence in large, attractive states like Massachusetts.”
“Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts. We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”—Bachtell in a press release
The acquisition gives Cresco approximately 42,000 square feet of flowering canopy, bringing its combined canopy in-state to about 64,000 square feet, the company said. Cresco also adds three operational dispensaries in Leicester, Framingham, and Worcester, bringing its combined retail storefronts in the state to four. Concurrent with closing, the company’s Fall River retail location has transitioned to medical sales only.
The deal was first announced in March. In addition to the $90 million price tag, the transaction includes an earnout up to $68 million. At that time, Bachtell said the industry was “at the precipice of a transformational moment” and that, once the deal was completed, Cresco would “immediately vault to a top 3 share position in Massachusetts,” adding that it is “the third $1B-plus cannabis market” where Cresco has achieved such a status.
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