Market / Industry / Health

Trulieve is paying $2.1 billion in a blockbuster bid to dominate Arizona's cannabis market, while the rest of the industry is focused on New York

Posted On: Jun 21, 2021   |   Posted By: Business Insider

Trulieve is paying $2.1 billion in a blockbuster bid to dominate Arizona's cannabis market, while the rest of the industry is focused on New York

Summary List Placement New York is consuming the cannabis industry's attention. So Trulieve is looking west.
The Florida cannabis company said on Monday it will purchase Tempe, Arizona-based Harvest Health & Recreation in an all-stock deal that values Harvest at $2.1 billion. The deal will create the most profitable US cannabis company and one of the largest, rivaling industry leader Curaleaf.
Trulieve expects the combined operation to drive $1.2 billion of sales in 2021. Shareholders will receive 0.1170 shares of Trulieve for each Harvest share, representing a 34% premium over Harvest's May 7 close.
Trulieve's stock dipped 5.2%, while Harvest shot up over 11%.
The deal is the largest merger between two US cannabis companies, known as multistate operators or MSOs.
Robert Leidy, the founder of the cannabis-focused Teneo Capital Management, said the deal will put pressure on Trulieve's competitors to pursue deals focused on adding new states as well.
"We believe this transaction signals that the healthiest...

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