Massachusetts-based multistate cannabis operator Curaleaf announced Oct. 5 the completion of its previously announced acquisition of Tryke Companies (doing business as Reef Dispensaries), a privately held vertically integrated operator.

The transaction’s closing means Curaleaf’s national footprint now includes 29 cultivation sites and 144 dispensaries in the U.S., with key growth in the Arizona, Nevada and Utah markets.

“We are pleased to welcome Tryke to the Curaleaf family as we expand our operations and bolster our competitive position in three key growth markets,” Boris Jordan, founder and executive chairman of Curaleaf, said in a press release. “This strategic transaction expands our U.S. presence and yields meaningful benefits for all of our stakeholders. The acquisition is immediately accretive to our EBITDA margins and free cash flow generation.”

The Curaleaf-Tryke deal comes after Cresco Labs announced its intentions to acquire Tryke in September 2019 in a deal that included $282.5 million in considerations—roughly $252.5 million for Tryke’s operating assets plus $30 million for the company’s real estate assets. But that deal was terminated in April 2020.

RELATED: Cresco Labs Announces Mutual Agreement to Terminate Purchase Agreement with Tryke

In November 2021, Curaleaf announced its intentions to acquire Tryke in a cash and stock transaction that was valued at approximately $286 million at the time.

But the final deal that closed this week included a total consideration of roughly $181 million, according to Curaleaf:

$10 million in cash and 2.7 million shares paid at closing; andAdditional cash and shares consideration of $75 million and 16.5 million in subordinate voting shares, to be paid in three installments on the first, second and third anniversaries of the closing.

A contingent consideration of up to 1 million subordinate voting shares may be paid in 2023 based on the business exceeding certain EBITDA targets in 2022.

“As we continue to unite the strength of our brands, products and cultivation channels to lead the industry, we’re excited to join forces with Tryke to deliver additional value for our customers and retailers in Arizona, Nevada and Utah,” Curaleaf CEO Matt Darin said in the release. “This deal represents a significant opportunity with strong long-term growth potential, and we are now strategically positioned us to accelerate our growth in the West.”

Tryke Companies Highlights:

Four dispensaries in Las Vegas, Sparks and Sun Valley, Nev.; two dispensaries in Phoenix.Expansive product offering including a wide variety of in-house and third-party flower, concentrates, vape cartridges, edibles, topicals and CBD products.Extensive portfolio of processing licenses with 30,000 square feet of cultivation; capacity to expand to 80,000 square feet over the next three years.]]>