Trulieve Cannabis and Harvest agree $2.1bn takeover
Trulieve Cannabis is to snap up Harvest Health & Recreation in a $2.1bn deal, one of the fledgling industry’s largest-ever.
Florida-based Trulieve and Arizona’s Harvest are licensed to supply the adult-use cannabis markets.
Trulieve said both firms had developed “deep, vertically-integrated operations” in their key markets, and that the combined business would have 22 cultivation and processing facilities along with 126 dispensaries.
Kim Rivers, chief executive of Trulieve, labelled the deal the “largest and most exciting acquisition” in the industry’s history.
She added: “This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth. Harvest provides us with an immediate and significant presence in new and established markets, and accelerates our entry into the adult-use space in Arizona.”
Steve White, chief executive of Harvest, added: “As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult-use sales in Arizona will add tremendous value to the combined organisation.”
Under the terms of the deal, Harvest investors will receive 0.1170 of a Trulieve share for each Harvest share they hold, implying a price per Harvest share of $4.79. Trulieve said the price represented a 34% premium to the 7 May closing price.
The transaction remains subject to the approval of the Supreme Court of British Columbia and Harvest shareholders. Both companies are listed on Canadian Securities Exchange.