Cresco Labs and Columbia Care Terminate $2 Billion Merger
August 1, 2023Chicago, Illinois-based Cresco Labs and New York-based Columbia Care have mutually agreed to abandon the acquisition agreement that would have seen Cresco acquire Columbia Care in full. That deal was originally announced in March 2022 and amended this February. There are no penalties or fees related to the mutual agreement to waive the transaction. The deal was originally valued at $2 billion.
In announcing the move, Cresco CEO Charlie Bachtell alluded to the difficult environment for the cannabis industry currently as federal legalization remains stalled in Congress. “In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders,” he said. “Moving forward, we remain committed to our Year of the Core strategy, which involves the swift restructuring of low-margin operations, improving competitiveness and driving efficiencies in markets where we maintain leading market share, and scaling operations to prepare for growth catalysts in emerging markets. A strong core will enable us to take advantage of the margin accretive growth opportunities we foresee within this tough economic time for the cannabis industry.”
Additionally, the $185 million deal the two companies struck with Sean “Diddy” Combs to sell him certain cannabis retail and production assets in New York, Illinois, and Massachusetts, has also been terminated.—Danny Sullivan
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