Curaleaf Holdings, Inc. has completed its acquisition of GR Companies Inc. – better known as Grassroots – making it the largest vertically-integrated multi-state cannabis operator in the U.S. by revenue.
The deal expands Curaleaf’s presence from 18 to 23 states, 135 affiliated dispensary licenses, 88 operations dispensaries, more than 30 processing facilities, and 22 cultivation sites with 1.6 million square feet of growing capacity.
The deal was announced last July for $875 million in cash and stock. Grassroots Co-Founder and CEO Mitchell Kahn, who was named to the Curaleaf board of directors at the deal’s close, said the companies have “a combined strategic vision to create a dominant position in the industry.”
Joseph Lusardi, CEO of Curaleaf, said the deal firmly established the company’s market leadership position.
“The integration of Grassroots is expected to be immediately accretive to our financial performance, with our unprecedented scale providing significant opportunities to leverage Curaleaf’s powerful consumer brands as well as new form factor innovations across our expanded national presence.” – Lusardi in a statement
Curaleaf now operates in Pennsylvania, Arizona, Connecticut, Florida, Illinois, Pennsylvania, Maryland, Massachusetts, Maine, Nevada, New Jersey, New York, North Dakota, and Vermont.
Under the announced terms of the deal, Curaleaf paid $75 million in cash, 102.8 million subordinate shares of Curaleaf, and $40 million in Curaleaf shares priced at the 10-day volume-weighted average price prior to the transaction’s closing.
Curaleaf also this year completed their acquisition of Select brand parent company Cura Partners Inc. and last month announced that they were expanding that brand into four new state markets through next month.
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