Chicago marijuana company purchased in deal worth $875 million
Massachusetts-based Curaleaf cited the “deep experience in the Midwest market” of Chicago-based Grassroots Cannabis in the acquisition.
It’s high times for Chicago’s Grassroots Cannabis, which will be sold to Massachusetts-based Curaleaf in an $875-million deal announced Wednesday.
The move will allow Curaleaf Holdings Inc. entry into Illinois, which is set to become one of the country’s largest recreational marijuana markets on Jan. 1.
Curaleaf will acquire Grassroots for $75 million in cash and the rest in stock options, the company said in a statement announcing the deal, which is expected to close in early 2020.
Curaleaf has been snapping up marijuana companies across the country.
Just earlier this month, the Phoenix Business Journal reported that Curaleaf had purchased two Arizona dispensaries for $25.5 million in cash and stock. The company also recently acquired Cura Partners, owners of the Select brand of THC products that are popular in the West Coast market, in a deal worth more than $948 million.
With the purchase of Grassroots, Curaleaf will become the largest medical and recreational cannabis company in the country, with access to a total population of approximately 177 million people, according to the announcement.
Curaleaf Holdings Inc. currently operates in 12 states and has 45 dispensaries, according to the company’s website.
The deal with Grassroots will bring expand Curaleaf’s presence to 19 states with 131 dispensary licenses and 20 marijuana cultivation sites, according to a statement from the company.
“Today’s announcement is a testament to the hard work of the many employees that helped make Grassroots the leading cannabis company in the Midwest,” Grassroots CEO Mitch Kahn said in a statement. “This acquisition will enable us to give our patients and retail partners greater access to products that adhere to the highest standards of quality and reliability, and our employees the opportunity to be part of a best-in-class operator.”
In March, Grassroots announced it had raised $90 million in venture capital funding to fuel growth, including a hiring blitz last month. In addition to Illinois, Grassroots has facilities in Nevada, Pennsylvania, Michigan, Maryland, Oklahoma, Ohio, Vermont, North Dakota, Arkansas and Connecticut.
Saying the Grassroots’ team “brings deep experience in the Midwest market,” Curaleaf also announced that Grassroots co-founders Matt Darin and Steve Weisman will join Curaleaf’s senior management team and Kahn will fill a seat on Curaleaf’s board.