One week after announcing its acquisition of a single dispensary in the state of Arizona, Curaleaf Holdings (CSE: CURA) appears to be looking to continue its expansion in the state. The firm yesterday morning announced that it has entered a definitive agreement to acquire Bloom Dispensaries.
Bloom is a vertically integrated single state operator, whom owns a total of four dispensaries and two cultivation and processing facilities. The cultivation and processing facilities are said to be adjacent to each other, with a total of 63,500 square feet of space in Phoenix. The dispensaries meanwhile are found in Phoenix, Sedona, Peoria, and Tucson.
With revenue of roughly $66.0 million for 2021, the company is paying roughly 3.2x sales, with the transaction being pegged at $211 million, with consideration to consist entirely of cash. EBITDA margins for the year meanwhile are claimed to be more than 40%.
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The arrangement will see the company pay $51 million upon closing, while the remaining $160 million is to take the form of a promissory note, with $50 million due in one year, $50 million due in two years, and $60 million due in three years.
The transaction is currently slated to close in January 22, bringing the firms retail locations to sixteen assuming the close of other recently announced transactions in the state.
Curaleaf Holdings last traded at $11.45 on the CSE.
Information for this briefing was found via Sedar and Curaleaf Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
