Cresco Labs has completed the acquisition of 100% of the outstanding equity interests in PharmaCann Penn for $50 million, adding nine operational medical marijuana dispensaries in Pennsylvania.
The transaction expands Cresco’s retail footprint in what the company described as the second-largest U.S. medical marijuana market, which generated more than $1.1 billion in annual sales last year.
Following the acquisition, Cresco said it will become the No. 1 medical marijuana retailer in Pennsylvania. The company is also the state’s No. 1 wholesaler, giving it additional opportunities to leverage its cultivation, wholesale and retail infrastructure.
Cresco expects the acquisition to be immediately accretive to revenue, margins and cash flow.
The $50 million purchase price was funded through a combination of cash and a seller note. The transaction was completed on a cash-free, debt-free basis with an agreed normalized level of working capital.
Cresco operates national cannabis brands including Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s and Remedi, along with its Sunnyside dispensary network.
KEY QUOTE:
“We are focused on deploying capital into opportunities that strengthen our competitive position and generate attractive long-term returns. This transaction expands our retail footprint in a core market through a highly strategic acquisition while creating additional opportunities to leverage our existing infrastructure. Pennsylvania is one of our core markets, where scale and vertical integration create durable competitive advantages. Pairing more retail doors with our scaled cultivation and leading wholesale business reinforces our position as the consolidator of choice in the markets that matter most.”
Charlie Bachtell, CEO of Cresco Labs
