Trulieve Cannabis Corp. is set to acquire all of the issued and outstanding shares of Harvest Health & Recreation in a deal worth approximately $2.1 billion. It’s the largest-ever cannabis transaction in the U.S. and will create the nation’s most profitable multi-state operator, the companies said in a press release.
The combined firm will have a consensus 2021 revenue of $1.2 billion, according to the release.
Kim Rivers, Trulieve CEO, described the deal as the industry’s “largest and most exciting acquisition so far.”
“This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth. Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona.” – Rivers in a statement
Steve White, CEO of Harvest, described Trulieve as having “achieved unrivaled success and scale in its home state of Florida.”
“As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult-use sales in Arizona will add tremendous value to the combined organization as it continues to expand and grow in the coming years,” he said in a statement.
The firms will have a combined 2020 adjusted EBITDA of $266 million and a combined 2021E consensus adjusted EBITDA of $461 million. The combined business will have operations in 11 states, consisting of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries in both medical and adult-use cannabis markets.
The deal was unanimously approved by the board of directors for both companies.
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