Staff
Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) is buying Bay, LLC better known as Cure Pennsylvania in a deal valued at $90 million. The cash and stock acquisition is expected to close in the fourth quarter. The acquisition includes three operational Cure Penn dispensaries in Lancaster, Phoenixville, and Philadelphia. Cresco noted that the three new stores would be incremental and complementary to Cresco Labs’ four existing Sunnyside dispensaries in Pennsylvania
“As we implement localization strategies tailored to state level dynamics, this Transaction with Cure Penn is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state. We’re thrilled to continue executing our playbook of achieving depth in strategic markets via rigorous capital allocation,” said Charlie Bachtell, CEO, and Co-Founder of Cresco Labs. “The Cure Penn team has developed a high-performing retail platform across three dispensaries that sets up another immediately accretive acquisition for Cresco Labs. We’ve proven our ability to drive incremental top and bottom-line growth from the implementation of Sunnyside’s best-in-class operating model, and we look forward to growing our house of brands which are already among the most sought after by patients in Pennsylvania.”
Cure Cannabis also has locations in Colorado and Oklahoma, but the group originated in Colorado. It was also one of the early licensees in the state of Pennsylvania.
Expansion Moves
Just last month Cresco Labs closed on its acquisition of vertically integrated Cultivate which operates three cannabis dispensaries in Leicester, Worcester, and Framingham Massachusetts. the deal included approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The three dispensaries bring the combined retail storefronts in-state to four. Concurrent with closing, the company’s Fall River retail location transitioned to medical sales only.
“The closing today constitutes another important step for Cresco Labs as we deepen our presence in large, attractive states like Massachusetts and increasingly tailor and strengthen our state-level strategies to optimize growth and profitability. Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts,” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs. “We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”
