Cresco Labs has acquired Columbia Care in a $2 billion deal, one of the largest acquisitions in the cannabis industry.
The combined company expects to have annual revenues in excess of $100 million in each of eight different states by 2023. It will have more than 130 retail stores in 18 states, including two dispensaries and a cultivation facility on Long Island. Publicly traded Cresco Labs operates the Sunnyside Medical Cannabis Dispensary in Huntington Station, while publicly-traded Columbia Care runs a medical cannabis dispensary in Riverhead. Columbia Care also has a cultivation facility in Riverhead. Last year, Columbia Care acquired a 34-acre cultivation site on Sound Avenue for $42.5 million from Van de Wetering Greenhouses.
The acquisition is expected to be completed in the fourth quarter. Once finalized, Columbia Care shareholders will hold about 35 percent of the pro-forma Cresco Labs shares, according to a company statement.
“We are incredibly excited to announce this transformative transaction today at a very important time in the development of this industry,” Charles Bachtell, CEO of Chicago-based Cresco Labs, said in the statement. “This acquisition brings together two of the leading operators in the industry, pairing a leading footprint with proven operational, brand and competitive excellence. The combination of Cresco Labs and Columbia Care accelerates our journey to become the leader in cannabis in a way no other potential transaction could. We look forward to welcoming the incredible Columbia Care team to the Cresco Labs family.”
Nicholas Vita, CEO of Columbia Care, said the deal delivers the best outcome for the company’s stakeholders.
“In an evolving industry, the opportunities to better achieve our mission through consolidation led us to this historic moment,” Vita said in the statement. “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.”