Cannabis may not be fully legalized in the United States, but that hasn’t stopped cannabis companies and the cannabis sector from growing faster than the plant itself.
Today marks a new height in that growth, as the Massachusetts based cannabis company Curaleaf announced plans to purchase Cura Partners, owner of the Select cannabis brand, for just under $1 billion U.S. and over $1 billion Canadian. That makes it the largest acquisition by a U.S. based cannabis country to date.
“The transformational acquisition of Cura and the Select brand is another step in our journey to create the most accessible cannabis brands in the U.S.,” said Joseph Lusardi, CEO of Curaleaf. “The combination of Curaleaf and Select is a perfect fit. With our industry leading capacity, expansive retail distribution network and Select’s impressive sales and marketing capabilities, we intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range.”
This news comes in the midst of a series of cannabis consolidation moves, including the massive purchase of Acreage Holdings by Canada’s Canopy Growth Corp. just two weeks ago.
Every company in the sector is jockeying for position if and when the United States approves legal recreational marijuana at the Federal level. With this move, Curaleaf combines its East Coast footprint with the West Coast footprint of Cura, making the combined company the largest cannabis brand headquartered in the U.S.
Curaleaf shares are traded over the counter and have gone up six percent on the day.
The cannabis industry continues to expand while simultaneously consolidating into stronger, better companies. It’s an exciting time to monitor this sector.