Cresco Labs has reached an agreement to acquire Bluma Wellness Inc. in an all-share deal that values Bluma at $213 million. The move is the Chicago, Illinois-based firm’s first foray into Florida and Cresco CEO Charles Bachtell, said it gives the company “a meaningful presence in all seven of the 10 most populated states in the country with cannabis programs.”
“We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth. Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets.” – Bachtell in a statement
Bluma operates seven dispensaries under its operating subsidiary One Plant Florida and another eight under legal control or planned to open, the company said. The One Plant shops ranks second in Florida for store sales of flower; 15% of the company’s revenue is from home delivery as the dispensaries act as delivery hubs and support a fleet of 15 vehicles that offer 24-to-48 hour service statewide.
Under the terms of the transaction, Bluma shareholders will receive 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held. It is anticipated that, subject to required approvals, the transaction will be completed by the beginning of the second quarter.
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