After 2021’s record-breaking year for mergers and acquisitions, many marijuana industry insiders predicted that 2022 would be an even more active year.
But so far, that’s not been the case.
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Total year-to-date M&A volume decreased by 62% in the United States compared to 2021, and there were 39% fewer transactions, according to Viridian Capital Advisors, a New York-based cannabis capital, M&A and strategic advisory firm.
But Frank Colombo, Viridian’s director of analytics, said consolidation activity remained healthy in 2022, particularly when megadeals such as Trulieve Cannabis’ $2.1 billion acquisition of Harvest Health & Recreation are taken out of the equation.
For comparison, he said that Jan. 1-Sept. 9, 2022, is about 9% ahead of 2020 for the same date range.
And two sizable deals involving multistate operators are likely to close soon: Cresco Labs’ $1.4 billion acquisition of Columbia Care and Verano Holdings’ $400 million purchase of Goodness
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