Cannabis firms Ayr Wellness Inc., Curaleaf Holdings Inc., and The Parent Company each announced acquisition deals on Monday for $80 million, $67 million, and $65.2 million, respectively.
Miami-based multistate operator Ayr announced the close of its purchase of PA Natural Medicine, LLC, which operates three dispensaries in Bloomsburg, State College, and Selinsgrove, Pennsylvania. Those dispensaries will be rebranded to “Ayr” by the end of the year, the company said.
The terms of the deal include upfront consideration of $80 million, including $35 million in cash $25 million in seller notes, and $20 million in stock. An earn-out based on 2021 Adjusted EBITDA, is payable in the first quarter of next year.
Ayr now operates in Arizona, Florida, Massachusetts, Nevada, and Pennsylvania.
Massachusetts’ Curaleaf also on Monday said it had completed its acquisition of Los Sueños Farms, which at 66 acres is the largest outdoor grow in Colorado. In a statement, Boris Jordan, executive chairman of Curaleaf, said the “deal provides Curaleaf with a high-quality, efficient, and low-cost supply of biomass to support our wholesale and retail customers in Colorado.”
“And, once interstate commerce is allowed, on a regional scale. Overall, our newly expanded cultivation capacity will allow us to better serve Colorado’s $2.2 billion annual cannabis market opportunity.”—Jordan in a statement
The $67 million deal includes land, equipment, a 1,800 plant indoor grow, and two retail cannabis dispensaries.
The $62.5 million deal announced also on Monday by California-based The Parent Company (TPCO Holding Corp) is for 100% equity of the retail dispensary and delivery operator Coastal Holding Company, LLC, for $16.2 million in cash with considerations of up to $40 million in equity of The Parent Company upon the completion of milestone events, the company said in a press release. The deal also includes a $9 million option to acquire the remaining equity of a dispensary that Coastal currently holds a minority interest in.
Once finalized, the acquisition will increase The Parent Company’s current California retail store and delivery depot footprints to 11 and six, respectively. The company said it will position it with the second-largest operating retail dispensary and delivery hub in the Golden State with an expanded reach to more than 80% of the state’s population.
The deal still requires approval from state regulators and the NEO Exchange which is expected next year.
Get daily cannabis business news updates. Subscribe