Cresco Labs and Columbia Care announced the expiration of the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with Cresco Labs’ previously announced proposed acquisition of Columbia Care.
Cresco Labs revealed the proposed deal on March 23, 2022 and said that it would make it the largest multi-state operator by pro-forma revenue, which would total more than $1.4 billion.
The combined companies would have 130 retail stores across an 18 market footprint, which they said would give them the second-biggest retail footprint in the cannabis industry and biggest retail footprint outside of Florida. Independently, the companies currently have the highest share positions in four markets (IL, PA, CO, VA) and the companies said the acquisition will give them "meaningful presence in today’s most influential markets and those with the biggest tailwinds for growth and adult use upside including: NY, NJ, VA, PA, OH, MD, and FL."
“Completion of the HSR milestone is a major step towards closing the acquisition of Columbia Care. We’ve been concurrently working on our divestiture process and working with our state regulators to align with our previously disclosed estimated closing timeline of year-end,” said Charles Bachtell, CEO of Cresco Labs. “With this acquisition, we will be able to leverage our best selling cannabis portfolio1 across the most exciting footprint in cannabis and further develop our leading positions with exposure to all ten of the largest projected revenue states in 2025, according to BDSA.”
The closing of the transaction remains subject to the satisfaction of all remaining closing conditions including the Columbia Care shareholder vote. Both companies continue to work towards obtaining all required regulatory approvals.