Acquisition creates the world’s most valuable cannabis market
Harvest Health & Recreation Inc. has announced the acquisition of Verano Holdings at in an all-stock deal worth $850 million. Verano Holdings is one of the largest privately held multi-state, licensed operators of cannabis facilities which will be bought and will include an Executive team of 300 employees with retail, manufacturing, branding, logistics and operational experience with a focus on hiring minorities, women and veterans. According to Jason Vedadi, Executive Chairman of Harvest, The combination with Verano fits perfectly with Harvest’s vision of creating the world’s most valuable cannabis company.
Sam Dorf, Co-founder and Chief Growth Officer of Verano stated, “Verano has been creating a brighter way for cannabis production, products and health and wellness by assembling a stellar team of experts drawn from the cannabis industry and the top echelons of Fortune 500 corporations.”
Harvest Health & Recreation’s acquisition of Verona Holdings is its second acquisition in less than a month. The reason for this acquisition is the wave of consolidation in the US cannabis industry. Furthermore, this expansion was planned because of the heightened competition for licences in states which have recently legalised cannabis. Besides that, the acquisition allows it to expand and establish a foothold in new markets.
Collaborating to deliver high quality products
According to the deal, the combined company will be one of the largest multi-state operators with total cultivation expansion capacity of 900,000 sq. ft in Illinois, Nevada & Maryland. George Archos, Verano Co-founder and CEO, stated, “This is a natural match between like-minded entrepreneurs who have built our companies from the initial facilities into two of the largest MSOs [multi-state operators] in the U.S., with an unwavering focus on operational excellence, superior quality products and service, and delivering value to customers and shareholders,”
Harvest’s purchase of Verano offers it licenses and operations in 11 states and territories. These also include seven cultivation licenses and 37 retail licenses. Furthermore, the combined company also would be able to access a portfolio of premium brands that include more than 150 product SKUs sold in more than 150 retail locations. There would be new market opportunities for cannabis biotech, food and beverage verticals which will be done by implementing Ethanol extraction technology at pharmaceutical grade levels Additionally, the combined company is expected to be operating 30 dispensaries, eight cultivation facilities and seven manufacturing facilities, with expected further aggressive operational expansion.