Trulieve Agrees To Buy Harvest Health In Blockbuster, All-Stock Merger Worth $850M

In #finance, #Trulieve agrees to #acquire fellow multistate #marijuana operator #Harvest #Health in an all-#stock megamerger worth 2.1 #billion #dollars, representing the largest #US #cannabis deal to date. The purchase will facilitate #Florida-based Trulieve’s expansion into #Arizona’s medical and #adult-use marijuana programs, where Harvest is a market leader, with 15 open #dispensaries, as well as #cultivation and #processing operations. Under terms of the transaction, Harvest #shareholders will receive .117 of a Trulieve share per Harvest share, based on a 34 percent #premium over #May 7th’s closing stock prices. This comes after Harvest and #Chicago-headquartered #MSO Verano Holdings mutually terminated an 850 #million dollar merger following financial challenges and regulatory complications back in 2019. The Trulieve deal is expected to go more smoothly, with both companies’ board of #directors unanimously approving the move, and financial #analysts #forecasting its closing in the second half of this year. While some are critical of the planned acquisition, claiming it could be more dilutive to Trulieve shareholders than other potential purchases, others point out that it could be beneficial to both businesses by addressing investor criticisms that Trulieve is primarily a single-market operator in #medical-only Florida, and that Harvest holds too much debt, at 294 million dollars as of the third quarter of 2020. Upon completion of the agreement, the combined entity will be the country’s largest cannabis company by #footprint, with 126 retail locations, as well as 22 grow and processing facilities across 11 states. With accelerating progress in state policies and possible federal cannabis reform on the horizon, industry experts predict continued consolidation within the U.S. marijuana space.

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William Bradley

William Bradley

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