Cresco spending $80 million to acquire another Pennsylvania marijuana firm

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Chicago-based Cresco Labs said Thursday it will acquire Pennsylvania-based Laurel Harvest Labs in a cash-and-stock deal worth $80 million.

The acquisition is the multistate operator’s second in less than a month, following the $90 million purchase of Cure Pennsylvania in September.

Cresco said in a news release that the addition of Laurel Harvest will further cement its market share in Pennsylvania, where it already has a cultivation facility and four dispensaries.

Under the deal, Cresco gets:

  • A 52,000-square-foot cultivation facility in Lancaster County – on top of its existing facility in Brookville – that can double in size.
  • Another distribution hub.
  • Six dispensary licenses, though only one, in Montgomeryville, is currently operational. A second outlet, in Scranton, is under construction.

The acquisition also gives Cresco access to cannabis research and development.

Laurel Harvest has a state “clinical registrant license” that allows the company to work directly with the Lewis Katz School of Medicine at Temple University in Philadelphia on “one of the most sophisticated cannabis research programs in the country,” Cresco CEO Charlie Bachtell said in the release.

Cresco shares trade as CL on the Canadian Securities Exchange and as CRLBF on the over-the-counter markets.