Curaleaf To Buy Bloom Cannabis Dispensaries For $211M Cash, Bolstering Its Presence In Arizona

Curaleaf Holdings, Inc. CURA CURLF will buy Bloom Dispensaries, a vertically integrated, single state cannabis operator in Arizona, for $211 million in cash. The marijuana company confirmed Tuesday it has entered into a definitive acquisition agreement, expecting the transaction to close in January.

This is Curaleaf’s second cannabis acquisition in the Grand Canyon State this month, as the company announced last week it will buy the Arizona-based dispensary Natural Remedy for $13 million in stock and cash.

Bloom Acquisition Highlights

Under the deal Curaleaf will pay $51 million in cash at closing, with the remaining approximately $160 million to be paid in three promissory notes of $50 million, $50 million, and $60 million due, respectively, on the first, second and third anniversary of closing of the transaction.

The proposed transaction with Bloom includes four retail dispensaries in Phoenix, Tucson, Peoria and the only dispensary currently in Sedona.

In addition, Bloom strengthens Curaleaf's production capabilities in Arizona with the addition of two adjacent cultivation and processing facilities in north Phoenix totaling approximately 63,500 sq. ft.

What’s more, Bloom has an attractive financial profile, generating expected 2021 revenue of approximately $66 million and EBITDA margins of more than 40%.

Following the close of Bloom and the previously announced acquisitions of Tryke Companies and Natural Remedy Patient Center, Curaleaf's retail footprint will increase to 16 dispensaries in Arizona and 128 nationwide. 

"We are excited to announce the acquisition of Bloom, which shares Curaleaf's mission of delivering the highest-quality products and superior service to patients and customers while striving to make a positive impact in the communities we serve,” Joseph Bayern, CEO of Curaleaf stated. “Bloom has built a strong and profitable business, and we believe the combination of our two companies will enhance our competitive position and ability to continue gaining share in the highly attractive Arizona market." 

Price Action

Curaleaf shares traded 1.04% lower at $8.6 per share at the time of writing Tuesday morning.

Photo by Add Weed on Unsplash