Curaleaf In Growth Mode As Key Acquisitions Expand Footprint
August 25, 2020Massachusetts-based Curaleaf is emerging as a multi-state force in the cannabis business, with revenue up 22% quarter-over-quarter to $118 million in the three months through June, even as Covid-related closures temporarily halted business in the key markets of Massachusetts and Nevada. Curaleaf’s adjusted EBITDA reached $28 million, an increase of 40% over the previous quarter.
On a pro forma basis—including its recent acquisitions of fellow multi-state operator Grassroots and Connecticut medical dispensary Arrow Alternative Care—Curaleaf’s second-quarter revenues came to $165 million. Following the $700 million Grassroots purchase, which closed in late July, Curaleaf has a presence in 23 states with more than 135 dispensary licenses and 88 operational retail locations, as well as 22 cultivation sites and 30 processing facilities.
Curaleaf gained entry into six new states—including the high-growth markets of Illinois and Pennsylvania—via the Grassroots deal. “The closing of Grassroots affirms our position as the world’s largest cannabis company when measured by both revenue and operating presence,” said Curaleaf CEO Joseph Lusardi.
In addition to Grassroots and Arrow, Curaleaf earlier this year acquired the Select brand of oils, edibles, CBD products, and tinctures, which is now available across 12 states and is especially strong in the West. It also bolted on Colorado-based edibles producer Blue Kudu, which is firmly entrenched in its home market. Besides the brand itself, the Blue Kudu deal gave Curaleaf control of an 8,400-square-foot infusion kitchen and processing facility in Denver.—Daniel Marsteller
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