Curaleaf Holdings To Buy Grassroots In $875M Deal

Cannabis operator Curaleaf Holdings, Inc. CURLF CURA said Wednesday it has entered into an agreement to acquire multi-state operator Grassroots for $875 million in cash and stock.

The deal will position Curaleaf as the biggest cannabis company in the world by revenue. The company will increase its presence to from 12 to 19 states.

Grassroots is a private company known for its cannabis products and its retail brand Herbology. Its large-scale portfolio includes facilities in markets such as Nevada, Illinois and Pennsylvania.

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The combined company will have 68 operational locations, 26 processing facilities, 131 dispensary licenses, and 20 cultivation sites, according to Curaleaf.

"With the acquisition of Grassroots and the pending acquisition of Select, Curaleaf is the world's largest cannabis company by both revenue and operating presence," said Joseph Lusardi, CEO of Curaleaf.

"With a combined 68 open dispensaries, this transaction significantly accelerates our expansion strategy and strengthens our reach across the medical and adult-use markets. In addition, it enhances the depth of our retail and wholesale platform across the country. By leveraging our scale, as well as our market leading capabilities and expertise, we will continue to deliver value for our shareholders."

Curaleaf's stock is up 28.91% on a year-to-date basis, closing Tuesday's session at $6.51.

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