Massachusetts-based Curaleaf, a cannabis company with a market cap of about $3.6 billion, on Wednesday agreed to buy privately owned Grassroots for $875 million in stock and cash.
Curaleaf said the transaction – $75 million of it is in cash, the rest in stock – “solidifies” its position as the world’s largest marijuana company in terms of revenues and the largest in the U.S. by other key measures.
The acquisition of Chicago-based Grassroots expands Curaleaf’s presence from 12 states to 19 with the addition of coveted markets such as Illinois and Pennsylvania.
The deal also expands Curaleaf’s footprint into other states, including Michigan, Oklahoma and Vermont.
The news comes on the heels of a Curaleaf expansion spree that included a May 1 announcement of the company’s plans to buy Cura Partners in a roughly $949 million deal.
Once both the Grassroots and Cura deals close, the combined company would have 131 dispensary licenses, 68 operational locations, 20 cultivation sites and 26 processing facilities.
Curaleaf trades on the Canadian Securities Exchange under the ticker symbol CURA. The firm’s stock was up about 20% Wednesday morning on heavy volume.
Get more analysis of the deal at MJBizDaily’s Investor Intelligence.
More details on Curaleaf’s planned Grassroots acquisition, can be found here.