In a move that would create a cannabis giant in the U.S., Chicago-based Cresco Labs will be acquiring NY cannabis firm Columbia Care.
Cresco Labs announced Wednesday that it’s acquiring New York-based Columbia Care to form the largest marijuana company in the United States by revenue and the second largest based on its retail footprint.
Trulieve Cannabis, based in Florida, has 158 dispensaries, giving it the title for No.1 in retail space.
Once the $2B deal is complete, Cresco will have a foothold in 17 states and Washington, D.C., up from the 10 states where it currently has a presence.
“This is how you turn brands like High Supply, Cresco and FloraCal into Miller High Life, Coca-Cola and Johnnie Walker Blue Label,” Charlie Bachtell, Cresco’s CEO, said to Bloomberg.
Both companies are publicly traded and hold medical marijuana licenses in New York, and each has four dispensaries scattered statewide.
Columbia Care also holds a medical license in New Jersey, which is gearing up to launch its adult-use market.
Based on Cresco’s own assessment, the deal creates a “pathway to a top-three position” for the firm in New York, New Jersey and Florida, in addition to positioning the company to hold the top market share in four other states.
It is not known if regulators in New York and New Jersey will require additional approvals or changes in order for the deal to move forward.
