Curaleaf will now operate in 23 states with the addition of its latest conquest
Consolidation among cannabis ventures was something that started strong when the cannabis stock market became a reality; however, the downfall experienced by the whole industry put a pause on those efforts. During the past months, a few consolidation efforts have been noticed in the market, for instance, the now-canceled merger between Aurora Cannabis and Aphria. More recently, and finally completed, Curaleaf Holdings, Inc – one of the largest vertically integrated cannabis operators in the US – has officially announced the acquisition of GR Companies, Inc., also known as Grassroots, to achieve one of its milestones.
With this acquisition, the market reach of Curaleaf is expanding from 18 to 23 states, thanks to the current locations in which Grassroots operates. The combined operations mean that the company has more than 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities and 22 cultivation sites with 1.6 million square feet of cultivation capacity. This new acquisition allows Curaleaf operations to expand into Illinois and Pennsylvania, which are currently booming.
“The successful acquisition of Grassroots marks Curaleaf’s expansion into new vertically integrated markets in the Midwest, firmly establishing our U.S. market leadership position. This highly complementary combination brings together two companies with a shared vision for enhancing patients’ and customers’ lives with high-quality cannabis wellness and lifestyle products. I’d like to welcome all our new Grassroots colleagues, patients and customers to the Curaleaf family as we pursue our mission of improving lives by providing clarity around cannabis and confidence around consumption,” said Joseph Lusardi, CEO of Curaleaf. “The integration of Grassroots is expected to be immediately accretive to our financial performance, with our unprecedented scale providing significant opportunities to leverage Curaleaf’s powerful consumer brands as well as new form factor innovations across our expanded national presence.”
This is certainly not the end of the consolidation of the cannabis industry. Analysts have predicted for months that 2020 could see a lot of companies joining forces, and additional acquisitions will be seen as the year moves forward.