Connect with us

Hi, what are you looking for?

Wednesday, Jun 29, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Curaleaf expands Arizona presence with US$211M Bloom acquisition

The deal follows two other recent acquisitions in the state

Curaleaf expands Arizona presence with US$211M Bloom acquisition
Bloom's medical and recreational cannabis store in Phoenix, Arizona. Photo via Bloom

American cannabis giant Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) is broadening its reach in Arizona with the purchase of a significant vertically integrated operator there.

On Tuesday, the company said it’s made a deal to buy Bloom Dispensaries in an all-cash transaction valued at US$211 million, which is expected to close in January.

The move follows other recent deals by Curaleaf in Arizona, including buying Tryke Companies for $286 million in November and Natural Remedy Patient Center for $13 million in December. After the transactions close, the company will have 16 pot shops in the state and 128 nationwide.

The new acquisition would give the firm four additional pot shops: in Phoenix, Tucson and Peoria, as well as the only location currently in Sedona.

It will also give it two adjacent production facilities in north Phoenix.

Curaleaf says Bloom has an attractive financial profile, generating expected revenue of around $66 million in 2021 with earnings before interest, taxes, depreciation and amortization (EBITDA) margins of more than 40 per cent.

“Bloom has built a strong and profitable business, and we believe the combination of our two companies will enhance our competitive position and ability to continue gaining share in the highly attractive Arizona market,” CEO Joseph Bayern said in a statement.

Under the agreement, Curaleaf will pay US$51 million in cash at closing, with the remaining US$160 million paid in three promissory notes of $50 million$50 million and $60 million due on the coming consecutive anniversaries of the deal.

On Dec. 13, the company said it got US$425 million via a private placement of senior notes.

In November, Curaleaf said it was on track to hit revenue of US$1.2 billion for the fiscal year.

Read more: Curaleaf to raise US$425M from private placement

Read more: Curaleaf ‘on track’ to hit US$1.2B sales target despite flat growth in Q3

 

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Nick Laba on Twitter

nick@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Health and Safety

Science doesn't know yet, but one psychedelic researcher is chasing clues to see if it can

Canada

As more medium-to-small producers came into play this year, great weed started hitting legal shelves at fairer prices

Culture

Punishments for possession include caning and the death penalty. Despite a global trend of reform, The Fine City remains staunch in its anti-drug stance

Analysis

While legal weed businesses decry enforcement of their accounts, the platform says it's keeping its all-ages community safe