Cannabis Company Trulieve has entered into a definitive arrangement agreement with Harvest Health and Recreation Inc. The former will acquire all of the issued and outstanding subordinate voting shares, multiple voting shares, and super-voting shares of the latter. The entire transaction represents a total consideration of almost $2.1 billion according to the closing price of the Trulieve shares as of May 7, 2021.
Combined business to operate in 11 states
The two companies have cemented vertically integrated operations in their key markets to become leading operators in the United States. Once the transaction is complete, the new combined business will operate in 11 states of the USA, the world’s largest regulated cannabis market.
The new business will also comprise 22 facilities for cultivation and processing with a total capacity of 3.1 million square feet. It will also have 126 dispensaries to serve both the medical and adult-use recreational cannabis markets.
The transaction is aimed at increasing scale across Trulieve’s hub markets. This will create the most significant U.S. cannabis operator with a combined retail and cultivation footprint. It also seeks to optimize nationwide presence and leverage expert teams and best practices.
Speaking about the development, Kim Rivers, the Chief Executive of Trulieve, said:
“Today’s announcement is the largest and most exciting acquisition so far in our industry, creating the most profitable public multi-state operator. Importantly, our companies share similar customer values with a focus on going deep in core markets. This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth.”
Approval by Boards of Directors
The Boards of Directors of the two companies have already endorsed the transaction. All the same, the transaction is governed by the approval of the British Columbia Supreme Court. It is also subject to certain conditions, such as a receipt of the required regulatory approvals.
Steve White is the Chief Executive Officer of Harvest. Regarding this development, he said:
“We are thrilled to be joining Trulieve, a company that has achieved unrivaled success and scale in its home state of Florida. As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult use sales in Arizona will add tremendous value to the combined organization as it continues to expand and grow in the coming years.”