U.S. cannabis retailer Curaleaf Holdings Inc said on Wednesday it would buy privately held GR Companies Inc (Grassroots) in a cash and stock deal valued at about $875 million to expand its footprint in the United States.
Wakefield, Massachusetts-based Curaleaf Holdings Inc is expanding its footprint in the American cannabis market by acquiring Chicago, Illinois-based Grassroots Cannabis, one of the last large privately-held Chicago-based cannabis companies to make a deal, according to Crain’s Chicago Business.
Grassroots has more 400 employees and operates in Illinois, Nevada, Pennsylvania, Michigan, Maryland, Oklahoma, Ohio, Vermont, North Dakota, Arkansas, and Connecticut. The deal, which is expected to be finalized in early 2020, will expand Curaleaf’s U.S. presence to 19 states, up from 12 states.
Under the terms of the deal, Curaleaf will pay Grassroots $75 million in cash, and provide 102.8 million subordinate voting shares and $40 million worth of shares.
The combined company will have 131 dispensary licenses, 68 operational locations, 20 cultivation sites, and 26 processing facilities, reports Market Watch.
In May, Curaleaf announced it would buy Cura Partners Inc’s Select brand in an all-stock deal valued at C$1.27 billion to create the world’s largest cannabis company by revenue. Known also as Cura Cannabis Solutions, Cura Partners is headquartered in Southeast Portland, Oregon but has extended its Select Oil brand of vape cartridges and other products to several states, including Nevada, California, and Arizona.
“With the acquisition of Grassroots and the pending acquisition of Select, Curaleaf is the world’s largest cannabis company by both revenue and operating presence,” said Joseph Lusardi, CEO of Curaleaf.
Published: July 17, 2019