Multistate operator Ayr Wellness signed a letter of intent to buy three medical cannabis dispensaries in Pennsylvania for $80 million, deepening the New York-based company’s presence in the fast-growing market.
The $80 million acquisition of PA Naturals includes $20 million in stock, $25 million in seller notes and $35 million in cash, according to a news release.
In addition, Ayr will pay an earnout of up to $40 million, mostly in stock and notes, in the first quarter of 2022, based on certain PA Naturals 2021 financial metrics.
PA Naturals, which operates under the retail brand of Nature’s Medicines, has dispensaries in the University of Pennsylvania college town of Bloomsburg and in State College, where Penn State University is located, as well as in Selinsgrove.
The acquisition is expected to close in the fourth quarter.
The company said it expects to rebrand the dispensaries under the Ayr Wellness banner.
Ayr has three existing dispensaries in Pennsylvania that have been open an average of less than six months but already are generating an annualized revenue rate of more than $7 million per outlet.
The 2021 MJBizFactbook projects that medical marijuana sales in Pennsylvania will reach $775 million-$925 million this year, a rise of more than 50% from 2020.