Curaleaf Holdings today announced a definitive agreement to acquire Deseret Wellness, the largest cannabis retail operator in Utah, in a deal valued at $20 million.
The proposed Deseret deal includes three retail dispensaries located in Park City, Provo and Payson, with a combined annualized revenue run rate of $14 million.
The acquisition will improve Curaleaf's retail footprint in Utah to four dispensaries. The company operates some 150 locations nationwide.
According to data released by the Utah Department of Health and Human Services (DHHS) Center for Medical Cannabis, the number of active medical cannabis patients in Utah increased by 51% in 2022, with 65,016 registered medical patients reported in February 2023.
Utah's net cannabis sales totaled $118.7 million in 2022, up 58.6% from the year prior.
Cannabis use for medicinal reasons has been legal in the state since November 2018, but the first medical marijuana dispensary didn't open until March 2020.
The transaction is expected to close imminently, subject to customary closing conditions.
In January, Curaleaf announced plans to close a majority of the company's operations in California, Colorado and Oregon as part of an effort to streamline business. The company also reduced its payroll by 10 percent.
