Cresco Labs Targets $2B Acquisition of Columbia Care

Cresco Labs Targets B Acquisition of Columbia Care
Cannabtimes

<![CDATA[An M&A agreement involving two of the biggest vertically integrated cannabis companies in the world was announced March 23. Chicago-based Cresco Labs Inc. entered a definitive arranged agreement to acquire New York-based Columbia Care to the tune of roughly $2 billion, pursuant to which Cresco will acquire all of the issued and outstanding shares of Columbia Care in a transaction that is expected to close in the fourth quarter of 2022, Cresco announced early Wednesday morning. If finalized, the acquisition would involve one of the largest price tags in the industry, rivaling that of Trulieve’s $2.1-billion deal to acquire Harvest Health last year (announced in May and completed in October), and of Tilray’s blockbuster merger with Aphria in May 2021, which created a company that had a combined market cap of US$8.2 billion at the time. Based on closing stock prices March 22, Cresco and Columbia Care had a combined market cap of $2.94 billion, trailing only Curaleaf ($4.78 billion), Green Thumb Industries ($4.28 billion) and Trulieve ($3.53 billion). Bachtell“We are incredibly excited to announce this transformative transaction today at a very important time in the development of this industry,” Cresco Labs CEO Charles Bachtell said in a press release. “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.”He added, “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.”Some of the key transaction highlights outlined by Cresco include:Largest multistate operator by pro-forma revenue: Gives Cresco Labs the largest pro-forma revenue in cannabis today at over $1.4 billion. Strategic, national footprint: Over 130 retail stores across an 18-market…

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Source : Cresco Labs Targets B Acquisition of Columbia Care

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