Chicago-based marijuana multistate operator Cresco Labs announced a $90 million cash-and-stock deal to acquire Bay, also known as Cure Pennsylvania, and its three medical cannabis dispensaries.
Cresco did not specify how much of the acquisition would be paid for with cash and how much would be paid for with stock.
The transaction, which is subject to approvals, is expected to close in the fourth quarter of this year, according to a Thursday news release.
Cresco said the dispensary operator “outperforms the average revenues per-store in Pennsylvania.”
Cure Pennsylvania’s three locations – in Lancaster, Phoenixville and Philadelphia – will add to Cresco’s four existing Sunnyside-brand dispensaries in Butler, New Kensington, Philadelphia and Pittsburgh.
The deal “is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state,” Cresco CEO Charlie Bachtell said in a statement.
Recreational marijuana remains illegal in Pennsylvania, although the state’s medical marijuana market has become a hot target for cannabis mergers and acquisitions.
MSO Ayr Wellness recently announced an $80 million deal to buy three MMJ dispensaries in Pennsylvania.
Cresco shares trade as CL on the Canadian Securities Exchange and as CRLBF on the over-the-counter markets.