Cresco Labs expands its reach in Pennsylvania through Cure Pennsylvania acquisition

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Cresco Labs continues to add new territory to its growing portfolio, changing the cannabis industry

Cresco Labs, the Chicago-based multi-state marijuana operator (MSO), announced that it has entered into an agreement to acquire Bay, also known as Cure Pennsylvania, and three of its medical cannabis dispensaries. The deal was done for cash and stock worth $90 million, which comes as a clear indication of Cresco’s intent to expand its footprint in The Keystone State.

While it is known that the acquisition will be done through cash and stock, Cresco did not provide details of how the allocations will be distributed. The transaction is still subject to approvals, but if all goes well, it is expected to close during the fourth quarter of this year. Cresco said the dispensary operator “outperforms the average revenue per store in Pennsylvania,” which made it even more attractive. Cresco currently has its presence in the state through the Sunnyside brand in Butler, New Kensington, Philadelphia and Pittsburgh; however, that list will now be expanded through the three new locations in Philadelphia, Phoenixville and Lancaster.

In a statement, Cresco CEO Charlie Bachtell said the deal “is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state.” While recreational marijuana remains illegal in Pennsylvania, medical marijuana, on the other hand, has become a hot target for cannabis mergers and acquisitions. The potential that this market has shown so far has been exponential and more and more companies want a piece of it. A clear example of this has been the other well-known MSO Ayr Wellness, which announced a few days ago an $80 million deal to also buy three MMJ dispensaries in Pennsylvania.