In its ongoing quest for global domination of the cannabis market, Columbia Care today announced that it has entered into a definitive agreement to acquire Medicine Man Denver, which has been serving the Denver metro area since 2009 and has been recognized as a best-in-class retailer, employer, and cultivator through numerous awards. The acquisition will add one cultivation facility and four dispensaries to Columbia Care’s national footprint.
“We have great admiration for what Medicine Man’s leaders, Sally Vander Veer and Andy Williams, have built over the past 12 years through their tireless leadership, local and state-level advocacy, and exceptional business acumen and vision,” said Nicholas Vita, CEO of Columbia Care. “We are also confident that the strong alignment of values between our two companies will help Columbia Care continue its growth in Colorado in a sustainable and responsible way. We are thrilled to bring one of Colorado’s longest-running and most highly respected cannabis companies into the Columbia Care family.”
“Medicine Man is thrilled to announce our partnership with Columbia Care,” said Sally Vander Veer, CEO of Medicine Man. “They are an ideal partner, and I am confident in their ability to uphold the higher standards that our family-owned and operated cultivation and dispensaries have built over the past twelve years. I knew this opportunity was the right fit for our family and employees because of our shared commitment to operational excellence, emphasis on employees and culture, and a customer-first mentality. I look forward to a seamless integration and an exciting next chapter of growth and success.”
The upfront consideration of $42.0 million, comprising $8.4 million in cash and $33.6 million in stock, represents a multiple of approximately 4.5x projected 2021 EBITDA. The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met.
*Full disclosure: Sally Vander Veer serves on the board of MJ Unpacked, the affiliated trade event of MJ Brand Insights.
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