TerrAscend To Acquire Michigan’s Gage Cannabis For $545 MillionSeptember 7, 2021
U.S. multistate operator TerrAscend will add a fifth state to its portfolio with its agreement to acquire Gage Cannabis, a leader in Michigan’s lucrative recreational market. Under the terms of the agreement, TerrAscend will buy all issued and outstanding subordinate voting shares of Gage for a total consideration of $545 million. Gage has built itself into a major player in Michigan, operating 10 dispensaries with another 10 slated to open in the coming months.
“The acquisition of Gage expands our footprint to the third largest cannabis market in the U.S.,” said Jason Wild, executive chairman of TerrAscend. “Combining our market-leading share in our existing states with Gage’s proven cultivation, retail, and marketing capabilities, creates one of the largest and most dynamic companies in the industry. We look forward to leveraging Gage’s profound connection with Michigan’s consumers, in addition to its established partnerships with award-winning brands like Cookies.”
TerrAscend currently operates in Pennsylvania, New Jersey, Maryland, and California, as well as Canada. Originally focused on Canada, the company pivoted to U.S. operations in 2018 and made a splash when it purchased upscale California dispensary chain The Apothecarium for $118 million in early 2019. There are now two Apothecarium locations in New Jersey as well, with a third on the way. The company boasts the top rank in wholesale market share in Pennsylvania, where it operates 144,000 square feet of cultivation and processing capacity and six dispensaries.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.