Cresco Labs To Acquire Columbia Care For $2.1B, Becoming Largest Cannabis Company In US

U.S. cannabis producer Cresco Labs Inc. CRLBF is acquiring its rival Columbia Care CCHWF for $2.1 billion, Reuters reported late Tuesday. Additional sources confirmed the transaction in conversation with Benzinga.

Once the deal is finalized, Cresco Labs will become the new leader in North American Cannabis.

Key Transaction Highlights:

• The deal gives Cresco the largest annualized pro-forma revenue in cannabis at over $1.3 Billion (US).
• Strategic and broad footprint comprising 18 states, two covering all 10 of BDSA’s top-10 largest and fastest-growing markets by 2025 and 55% of U.S. population
• Large diverse retail footprint of over 120 retail stores across 18 markets, representing the no. 2 retail footprint of all MSOs, and the no. 1 footprint excluding Florida.
• Exposure to every important cannabis market – New York, New Jersey, Virginia, Pennsylvania, Ohio, Maryland and Florida.
• Market share lead in key states – no. 1 share position in four markets (IL, PA, CO, VA,), no. 2 in MA, and a pathway to a top-three position in three more (NJ, NJ and FL), bringing Cresco to a leadership position in seven of the top 10 markets by revenue in 2025, according to BDSA.
• Full vertical integration in 16 of 18 states.
• Most popular brand portfolio: No. 1 market share in the U.S. across every major segment, including branded flower, branded concentrates and branded vapes, per BDSA.
• Most productive retailer banner: Cresco Labs’ 50 current Sunnyside retail stores have average annualized revenue per store of over $11 million, the highest of any scaled national operator in the industry.

Columbia Care’s stock has risen about 9% this year but is down nearly 70% since it started trading in 2019. Cresco Labs shares have slumped 63% from a 2021 peak.

Cresco is scheduled to report its fourth-quarter financials on Wednesday, while Columbia Care postponed its earnings from last week to this Thursday.