Curaleaf Holdings, one of the nation’s largest cannabis companies, is set to acquire Colorado-based edibles company BlueKudu. Neither the price nor terms of the deal were disclosed.
The acquisition marks Curaleaf’s first foray into Colorado, where BlueKudu has operated since 2011. The edibles manufacturer is best known for using ingredients sourced from Rainforest Alliance Fair Trade Certified farms in its, mostly chocolate, line.
Following regulatory approval, Curaleaf will operate BlueKudu’s 8,400-square-foot kitchen in Denver. The company said the move supports its planned expansion of the Select brand throughout Colorado. Curaleaf finalized the deal with Cura Partners – which included Select and 53 dispensaries and wholesale businesses – last month. While that deal was initially worth about $950 million, it closed at about $400 million following declines in cannabis stock prices and lower overall company valuations.
Curaleaf CEO Joe Lusardi noted in a statement that Colorado cannabis sales surpassed $1.7 billion last year and that BlueKudu “has developed a strong brand for customers seeking premium cannabis products” in its eight years in one of the nation’s pioneering cannabis markets.
“BlueKudu’s established production and distribution capabilities will allow Curaleaf to seamlessly enter the market and expand the Select brand presence in the state of Colorado.” – Lusardi in a press release
Once the deal is completed, Curaleaf will operate in 17 states. Currently, BlueKudu products are available in more than 200 retail locations throughout Colorado.
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