US marijuana retailer Curaleaf has signed a definitive agreement to acquire the state-regulated cannabis business of Cura Partners, in a deal valued at C$1.27bn ($949m).
The acquisition will involve Cura Partners’ Select brand, which includes its manufacturing, processing, distribution, marketing and retailing operations, and all adult-use cannabis products.
Select’s THC products are sold in more than 900 retailers.
The acquisition is said to combine the largest retail operator and the highest revenue generating wholesaler in the US.
The deal will provide immediate geographic diversification with Curaleaf’s footprint on the East Coast and Select’s brand strength on the West Coast. Curaleaf’s retail locations, vertical integration, wellness brand and East Coast market presence will be combined with Select’s wholesale model, lifestyle brand, and West Coast market presence.
Curaleaf CEO Joseph Lusardi said: “With our industry leading capacity, expansive retail distribution network and Select’s impressive sales and marketing capabilities, we intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range.
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“In addition, we intend to create significant operational synergies from the integration of Select’s wholesale business with our vertically-integrated cultivating, processing and retail platform.”
With the all-stock transaction structure, Curaleaf will be able to preserve financial flexibility to pursue additional mergers and acquisitions, as well as other strategic opportunities.
The transaction, expected to close this year, is subject to customary closing conditions, regulatory approvals, Cura Partners stockholder approval and the receipt of an agreement from the holders of its convertible debentures.
Upon completion of the transaction, Cameron Forni will join Curaleaf as president of Select and the Curaleaf board of directors. Select chief marketing officer Jason White will also join Curaleaf as chief marketing officer.