Vireo Growth said it will acquire certain cannabis cultivation, manufacturing and retail operations from subsidiaries of Cannabist across five markets: Colorado, Illinois, Massachusetts, New Jersey and West Virginia.
The deal is valued at $35 million and is expected to close in stages through calendar year 2026 and into calendar year 2027, subject to certain regulatory approvals.
The transaction represents the latest step in Vireo’s "ongoing strategic expansion initiative and is expected to further strengthen the its footprint in several attractive, limited-license cannabis markets," the company said.
Upon closing each market, Vireo will deepen its presence in Colorado with eight dispensaries and enter four new state markets. In total, the transaction is expected to add up to 25 dispensaries, one cultivation and one production asset, bringing Vireo’s pro forma retail footprint to approximately 230 dispensaries, including previously announced acquisitions pending closing.
This deal would position Vireo as a top-tier cannabis operator with operations across 15 states, and the second largest dispensary network in the country.
“The acquisition of select Cannabist assets meaningfully expands our operational footprint, strengthens our vertically integrated platform, and adds a highly experienced team along with operations in new markets for Vireo,” said Vireo CEO John Mazarakis in a statement. “This transaction reflects our disciplined and strategic approach to industry consolidation as we continue building one of the most capital efficient, vertically integrated cannabis platforms in the United States.”
“We are proud of the team and operations we have built across these markets, and we believe these transactions position those assets for continued growth and long-term success through Vireo’s platform,” said The Cannabist Company CEO David Hart in a statement.
For Vireo, the deal continues its recent M&A streak including deals for FLUENT, C21, Hawthorne, Pharmacann, Schwazze and Glass House.
For Cannabist, the deal continues its asset divestitures as part of a bankruptcy proceeding.
