Curaleaf Holdings Inc. has agreed to acquire GR Companies Inc., better known as Grassroots, in an $875 million cash and stock deal, the company announced on Wednesday. According to the firm, once the deal is finalized, Curaleaf will become the world’s largest cannabis company by revenue and the largest in the U.S. “across key operating metrics.”
Throughout the Midwest, Grassroots possess 61 dispensary licenses – 20 are currently operating – and 17 cultivation and processing licenses. The combined company will hold 131 dispensary licenses, 68 operational locations, 20 cultivation sites, and 26 processing facilities. The deal gives Curaleaf its first presence in Illinois – which legalized cannabis for adult use last month – Pennsylvania, Arkansas, Michigan, North Dakota, Oklahoma, and Vermont.
Joseph Lusardi, CEO of Curaleag said the deal “significantly accelerates” the company’s “expansion strategy and … reach across the medical and adult-use markets.”
“In addition, it enhances the depth of our retail and wholesale platform across the country. By leveraging our scale, as well as our market leading capabilities and expertise, we will continue to deliver value for our shareholders.” – Lusardi, in a statement
Under the terms of the deal, Curaleaf will pay $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.
Mitch Kahn, co-founder and CEO of Grassroots, will join the combined company’s board. Grassroots co-founders Matt Darin and Steve Weisman will join Curaleaf’s senior management team.
“This acquisition will enable us to give our patients and retail partners greater access to products that adhere to the highest standards of quality and reliability, and our employees the opportunity to be part of a best-in-class operator,” Kahn said in a statement.
In May, Curaleaf announced an agreement to acquire Select brand parent company Cura Partners, Inc in an all-stock deal worth nearly $1 billion. Cura is based out of Portland, Oregon and its products are sold at more than 900 retailers in the U.S.
Editor’s note: An earlier version of this article’s headline mistakenly referred to Grassroots as Greenleaf.
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