Harvest Health & Recreation, one of the United States’ largest vertically-integrated and diversified cannabis companies, announced this week its entrance into a definitive agreement to acquire Verano Holdings. The deal would make Harvest Health & Recreation the largest multi-state operator in the US cannabis sector.
The transaction will see Harvest Health & Recreation acquire all stock in Verano Holdings, at a price of US$8.79 pr share, for a total cash transaction value of approximately $850mn. Upon completion of the deal, Harvest will expand its operations to a further 11 states, gaining cultivation licenses in seven of them, as well as 37 new retail licenses.
Following the transaction, Harvest will be able to operate in up to 200 facilities in 17 U.S. states and territories, including 123 retail dispensaries.
"Expanding our national footprint is paramount at Harvest and allows us to continue on the path to profitable growth for shareholders," said Jason Vedadi, Executive Chairman of Harvest.
"This accretive transaction will improve our position by strategically expanding our operating base to realize the benefits of scale. From day one, both companies focused on consistent revenue and profit growth. We are excited to bring Verano's premium brands, depth of management and sound operations into Harvest."
"Our teams are architects of change in the cannabis industry. Both are geographically complementary and focused on operational excellence and bringing safe, high-quality, precisely dosed artisanal cannabis options to our customers," said George Archos, Verano Co-founder and CEO.
"We are crafting a brighter way forward together to grow Harvest's leadership and profile in key markets and deliver significant value to customers and shareholders."