Cresco eyes $2B acquisition of Columbia Care
Cresco Labs Inc (CL.CD) has announced the acquisition of Columbia Care Inc. (CCHW.NLB)
the purchase would make Cresco one of the largest cannabis conglomerates in the world and would come at a hefty price tag. The price will exceed $2 billion in total value.
The price tag is made slightly more palatable as Cresco will give up no cash or liquid assets in the deal, with the full $2 billion price tag being an all-stock purchase.
Cresco Labs will pay 0.5579 shares of its stock for each share of Columbia Care. The deal values Columbia Care’s price closed Tuesday at $3.12, the exchange marks a roughly 16% premium over closing.
Columbia Care shareholders will hold approximately 35% of the pro forma Cresco Labs when the deal closes as expected in the fourth quarter.
The finalization will make Cresco the largest multi-state operator in the country, measured by pro-forma revenue at more than $1.4 billion. Additionally, the newly combined company will have 133 dispensaries and a market capitalization worth approximately $4.5 billion. Columbia Care currently operates one Missouri dispensary, Cannabist in Hermann.
Cannabis sales in the United States are forecast to reach $46 billion by 2026, according to BDSA.
