Marijuana multistate operator Ayr Wellness agreed to purchase Illinois-based Herbal Remedies Dispensaries for approximately $30 million, continuing the company’s spree of cannabis acquisitions.
The Herbal transaction, which comes on the heels of Ayr’s $17 million purchase of two Nevada cannabis businesses, includes $10 million in stock, $12 million in seller notes and $8 million in cash.
The deal, which is expected to close in the fourth quarter of 2021, nets Ayr an operator of two licensed retail dispensaries, according to a news release. Herbal will add roughly 50 employees to Ayr’s total headcount.
The Illinois acquisition adds another state to Ayr’s growing portfolio, which also includes existing or impending operations in Arizona, Florida, Massachusetts, Nevada, New Jersey, Ohio and Pennsylvania.
Jonathan Sandelman, chair and chief executive officer of Ayr Wellness, said the company sees Illinois as a state that will deliver “meaningful revenue.”
“The total cannabis market in Illinois is already run-rating at $1.8 billion in annual sales, despite adult-use launching only 18 months ago,” he added.
Ayr Wellness, which has offices in New York and Toronto, trades on the Canadian Securities Exchange as AYR.A.