Cresco Labs Completes $90M Purchase Of Cultivate, Maximizing Massachusetts Footprint

Cresco Labs Inc. CL CRLBF confirmed Friday the closing of its previously announced acquisition of Cultivate for $90 million.

Transaction Highlights

• Approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The transaction also includes space available to further expand cultivation capacity.
• Three operational dispensaries located in Leicester, Framingham and Worcester, bringing combined retail storefronts in-state to four. Concurrent with closing, the company’s Fall River retail location has transitioned to medical sales only.
• Greater operating platform to pursue market share growth in the largest adult-use cannabis market in the northeast. The Massachusetts’ market structure offers a unique opportunity to wholesalers given limited cultivation licenses, robust pricing and abundant retail stores throughout the state.

“The closing today constitutes another important step for Cresco Labs as we deepen our presence in large, attractive states like Massachusetts and increasingly tailor and strengthen our state-level strategies to optimize growth and profitability,” Charlie Bachtell, CEO and co-founder of Cresco Labs said. “Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts. We have been thoroughly impressed with the Cultivate team and the quality of their operations. “

More recent news from Cresco Labs:

Cresco Labs To Aquire One Of The 'Top-Performing' Cannabis Dispensaries In Maryland – Blair Wellness Center

Cresco Labs Posts Strong Quarter: Revenue Jumps 17.7% To $210M Beating Estimates, Positive Adjusted EBITDA, Reaffirms Guidance

Curaleaf, Green Thumb, Trulieve & Cresco Still Cantor Fitzgerald's Top U.S. Picks, While Expecting Sales To Hit $36B By 2023

Price Action

Cresco Labs’ shares were trading 0.04% higher at $9.71 per share at the time of writing Friday morning.

Photo: Courtesy of Business Wire