Cresco Labs has acquired 100% of the outstanding equity interests in Cultivate Licensing and BL Real Estate (collectively, “Cultivate”), a vertically integrated Massachusetts operator, for upfront consideration equal to US$90 million plus an earnout of up to US$68 million. The Transaction is expected to close in the fourth quarter of 2021.
“At the precipice of a transformational moment in U.S. cannabis, now is the time to further our leadership in the country's largest and most important markets. Through this acquisition, Cresco Labs will immediately vault to a top 3 share position in Massachusetts, the third $1B+ cannabis market where we’ve achieved this status,” said Charles Bachtell, CEO of Cresco Labs.
“We continue to demonstrate our ability to execute operationally and make accretive investments to accelerate growth. Cultivate has been a trailblazer and an operational standout since the early days of the Massachusetts market. Like us, the Cultivate team is focused on growing premium flower, offering a full suite of branded products, delivering the best customer experience at retail, and elevating the cannabis industry to a new level of professionalism and social responsibility.” Mr. Bachtell continued, “This will also mark the fourth state in which we operate the maximum number of retail stores. Once again, we look forward to executing our playbook and demonstrating the growth and leverage that can be achieved by going deeper in strategic states. At a period of industry inflection, we are cementing our leadership in a deliberate manner as the most important company in cannabis.”
Cultivate operates approximately 42,000 sq. ft. of the flowering canopy. Additionally, the company planned an indoor expansion of approximately 20,000 sq. ft. of the additional flowering canopy.
For more information:
Cresco Labs
520 W Erie St Suite #220
Chicago, IL 60654
312-929-0993
info@crescolabs.com
crescolabs.com
Third dispensary in Worcester, estimated to be opened in Q2 2021.