Curaleaf Holdings (OTCMKTS: CURLF) Plans to Acquire Bloom Dispensaries

Curaleaf Holdings (OTCMKTS: CURLF) has announced plans to acquire Bloom Dispensaries. The company will purchase the Arizona business at $211 million in cash. The parties will complete the transaction by January 2022 after regulators’ approval.

What Curaleaf will gain from the deal

Curaleaf will gain three Bloom dispensaries in Peoria, Tucson, and Phoenix. It will also get another dispensary in Sedona. These locations have a population of 2.3 million. They also attract millions of tourists yearly.

The company will also gain two processing and cultivation facilities in Phoenix. These areas occupy an area of 63,500 square feet. Moreover, it has generated a revenue of $66 million in 2021 hence could accelerate growth for Curaleaf.

This move, along with the acquisition of Natural Remedy Patient Center and Tryke Companies, will give Curaleaf 16 dispensaries in Arizona and 128 in the U.S.

According to the Executive Chairman of Curaleaf, Boris Jordan, the purchase of Bloom allows the company to expand its reach in Arizona. Bloom also has assets and a good portfolio to strengthen Curaleaf’s position in the state.

The CEO of Curaleaf, Joseph Bayern, adds that the company is happy to merge with Bloom as it also focuses on delivering quality products and services to its customer. Furthermore, both companies strive to improve the communities they serve. Bayern also believes that the transaction will allow the company to compete and increase its share in the Arizona cannabis market.

Terms of the agreement 

The agreement stipulates that Curaleaf will give Bloom $51 million when they close the deal. Curaleaf will also pay the remaining $160 million in three promissory notes, including $50 million, $50 million, and $60 million on the first three anniversaries of the closing date.

Curaleaf is a cannabis company that operates in two segments, that is, Non-cannabis operations and Cannabis Operations. The Non-cannabis Operations sector provides lending facilities to adult and medical-use businesses, intellectual property licensing office administration, processing, and cultivation.

The Cannabis Operations sector produces and sells cannabis through wholesale and retail operations. Curaleaf sells these products under the UKU, Select, and Curaleaf brands. The company operates in 23 states, owns 25 cultivation facilities, and has 5200 people in its team.