In what they’re calling the largest American cannabis deal in history, Florida’s Trulieve announced its plans to acquire Arizona-based Harvest Health in an all-stock deal valued at approximately US$2.1 billion. (It’s like the Grapefruit League buying the Cactus League.)
Billion dollar baby
The combined multi-state operator will now have a presence in 11 states with 22 facilities for cultivation/processing and 126 dispensaries, according to Marijuana Business Daily. The company could also be the most profitable MSO in the country, with an EBITDA of US$461 million and projected combined revenue of $1.2 billion for 2021.
“This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth,” said Trulieve CEO Kim Rivers in the press release. “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.”
Tapping into Arizona’s massive market
The Copper State just launched its adult-use cannabis program in January. Harvest is the current market leader in the state, so the acquisition will give the largely Florida-focused Trulieve a way in — and beyond, via Harvest’s dispensaries in California, Maryland and Pennsylvania, according to CEO Steve White.
“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.”