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Cresco Labs seal deal acquiring Columbia Care, now the biggest leaders in cannabis

If you can’t beat them, join them, right? That rings true today as Cresco Labs entered a definitive agreement to acquire Columbia Care. The transaction is set to close in the fourth quarter of 2022, making Cresco Labs the largest cannabis company in the country. The deal cost around $2 billion, according to people familiar with the matter. 

The transaction gives Cresco Labs the largest proforma revenue in the industry with over $1.4 billion. Cresco Labs will now operate over 130 stores across 18 markets, giving it the top retail footprint outside of Florida. Additionally, the combined company now has a material market position in seven of the top 10 markets by revenue in 2025, as reported by BDSA

The acquisition brings high hopes for the new company, which pairs two leading rivals into one new business. Cresco Labs expects to exceed $100 million in annual revenues in eight different states by 2023 and increase its retail revenue mix from today’s 47% to 65%. 

“With Columbia Care’s strategic national footprint in the most attractive markets and Cresco Labs’ success in execution and incredibly popular brands, we will together create the most important – and the most investable – company in cannabis,” said Nicholas Vita, CEO of Columbia Care. 

Columbia Care shareholders will get 0.5579 of a subordinate voting share of Cresco Labs for each Columbia Care share they hold.  This would represent a premium on the Columbia Care Share price of 16% based on the closing prices, and 19% based on the 20-day volume-weighted average prices.  When the deal is closed, Columbia Care Shareholders will also hold approximately 35% of the proforma Cresco Labs shares.

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