After dominating the Florida market, Truelieve has made a bold move to expand their footprint into new states with an agreement to acquire Arizona-based Harvest Health & Recreation. So what does this mean?
Trulieve is known for their dominance in Florida, where they hold nearly 50% of the flower market share, but the company also had locations in California, Connecticut, Massachusetts and Pennsylvania. The Harvest acquisition will expand their reach into California, Florida, Maryland, Pennsylvania, and Arizona.
The combined businesses will have 22 cultivation facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets. A press release from Trulieve is calling it “the largest US cannabis transaction,” and says it will result in the “creation of the largest US cannabis operator on a combined retail and cultivation footprint basis.”
The deal will enrich Trulieve’s portfolio with attractive brands: Modern Flower, Roll One, Evolab, and CO2LORS. And Harvest’s well-established retail network will open the door to new states, most notably the coveted Arizona market. In the words of Harvest CEO Steve White, “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 organization as it continues to expand and grow in the coming years.”
The transaction has been approved by the boards of directors for both companies, but is subject to approval by two-thirds of Harvest shareholders and regulators. It also must be approved by the Supreme Court of British Columbia.