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.