Cresco Labs Inc plans to acquire Columbia Care Inc. for nearly $2 billion in one of the largest cannabis mergers, according to a press release by Cresco Labs on Wednesday.

  • The deal will integrate Cresco’s well-recognized marijuana brands with New York-based Columbia Care’s retail footprint to form the largest US multi-state operator by revenue.
  • Bachtell, set to head the combined company, stated that the deal would expand Cresco’s presence to 17 states, plus the District of Columbia, an increase from the current ten states. 
  • Cresco’s push to get name recognition for three of its top marijuana brands will be boosted by the transaction, which will allow the company to sell products to 70% of the potential market.
  • Columbia Care Investors will get 0.5579 of a subordinate voting share in Cresco for every one of their shares, making the transaction worth nearly $2 billion enterprise value based on the closing price on Tuesday.

The transaction will give Cresco the largest annual revenue in the cannabis industry, at nearly $1.4 billion. CL up +2.50%, CCHW up +6.41%, Pre-market trading