Trulieve, the preeminent medical cannabis operator in Florida, plans to expand to Pennsylvania by acquiring two MMJ companies in a $66 million deal.
Pennsylvania will be the fifth state in which Trulieve does business.
According to a news release, the Tallahassee-based company agreed to acquire McKeesport cultivator and producer PurePenn as well as dispensary operator Keystone Relief Centers, which does business as Solevo Wellness in the Pittsburgh area.
To acquire PurePenn, Trulieve will make an upfront payment of $46 million comprised of $27 million in subordinate voting shares and $19 million in cash, plus a potential earnout payment of up to approximately $60 million in Trulieve shares based on the achievement of certain agreed-upon earnings before interest, taxes, depreciation and amortization (EBITDA) milestones.
Trulieve agreed to acquire Solevo for an upfront purchase price of $20 million. The payment is comprised of $10 million in cash and $10 million in shares, plus a potential earnout payment of up to approximately $15 million in shares based on the achievement of certain agreed-upon EBITDA milestones.
The deals are expected to close during the fourth quarter of 2020.
The acquisitions will create a vertically integrated company in Pennsylvania for Trulieve, adding to the company’s existing operations in California, Connecticut, Florida and Massachusetts.
The deal also will expand Trulieve’s cultivation footprint with 35,000 square feet of existing cultivation in Pennsylvania plus planned expansion to 90,000 square feet in 2021.
With the acquisition, Trulieve will have 60 dispensaries across the country.