Cannabis company Cresco Labs is acquiring Columbia Care, a leading cultivator, manufacturer, and provider of cannabis products.
Chicago-based Cresco Labs will acquire all of the issued and outstanding shares of Columbia Care, which is valued at approximately $2 billion. The deal is subject to customary closing conditions and necessary regulatory approvals. It is expected to close in the fourth quarter of 2022.
“We are incredibly excited to announce this transformative transaction today at a very important time in the development of this industry. This acquisition brings together two of the leading operators in the industry, pairing a leading footprint with proven operational, brand, and competitive excellence. The combination is highly complementary and provides unmatched scale, depth, diversification, and long-term growth. On a pro-forma basis, the combined company will be the largest cannabis company by revenue, the number one wholesaler of branded cannabis products, and the largest nationwide retail footprint outside of Florida,” Charles Bachtell, CEO of Cresco Labs, said. “The combination of Cresco Labs and Columbia Care accelerates our journey to become the leader in cannabis in a way no other potential transaction could.”
This deal would give Cresco Labs a national footprint with over 130 retail stores in 18 markets, giving it the second-largest retail footprint in the industry. It will have a presence in several key markets, including New York, New Jersey, Virginia, Pennsylvania, Ohio, Maryland, and Florida.
The company expects to have annual revenues in excess of $100 million in 8 different states by 2023, with retail revenue jumping from 47 percent to 65 percent of its total. Cresco Labs expects to see total revenue increase to $1.4 billion after the deal is finalized.
“Since our founding, our mission has been to deliver the best outcome for our stakeholders,” Nicholas Vita, CEO of Columbia Care, said. “In an evolving industry, the opportunities to better achieve our mission through consolidation led us to this historic moment. With Columbia Care’s strategic national footprint in the most attractive markets and Cresco Labs’ success in execution and incredibly popular brands, we will together create the most important – and the most investable – company in cannabis. Getting to know Charlie, his team, and the culture at Cresco Labs has given me a high level of confidence in the ability to successfully integrate Columbia Care and maximize the tremendous value of the combined footprint.”