Trulieve Cannabis is planning to acquire Harvest Health & Recreation in a $2.1 billion all-stock deal.
Trulieve Cannabis
Trulieve is the first and leading medical cannabis company in the state of Florida, the third most populous state in the United States. Its vertically-integrated “seed-to-sale” operation has approximately 51% of the Florida market. The Company has 78 stores in Florida, and 83 nationwide, with more growth ahead.
Harvest Health & Recreation
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries.
$461 million profit estimated
Stifel GMP analyst Andrew Partheniou called it the largest transaction in U.S. cannabis history.
The deal between the two companies would result in one of the largest cannabis companies in the world, in terms of sales. Combining analyst estimates for both companies puts the estimated 2021 revenue at $1.24 billion, only slightly below consensus estimates for Curaleaf (CURLF) at $1.26 billion.
According to CEO Kim Rivers, Trulieve would also be the most profitable, with an estimate of $461 million. Harvest is planning to hold a special meeting during the third quarter to approve the deal.
The merged entity would be the leading operator in Florida and Arizona, with significant markets in Pennsylvania and Maryland.The companies would have operations in 11 states.
