Curaleaf Completes Acquisition of Tryke Companies
- Bolsters Company’s Presence in Three Key Growth Markets of Arizona, Nevada and Utah
- Expands Curaleaf’s Operations to 29 Cultivation Sites and 144 Dispensaries Nationwide
WAKEFIELD, Mass., Oct. 5, 2022 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today announced the completion of its previously announced acquisition of Tryke Companies (“Tryke”) (dba as Reef Dispensaries), a privately held vertically integrated, multi-state cannabis operator. With the close of the transaction, Curaleaf’s national footprint has reached 29 cultivation sites and 144 dispensaries nationwide.
We are pleased to welcome Tryke to the Curaleaf family as we expand our operations and bolster our competitive position in three key growth markets. This strategic transaction expands our U.S. presence and yields meaningful benefits for all of our stakeholders.
Boris Jordan, Founder and Executive Chairman of Curaleaf
The acquisition is immediately accretive to our EBITDA margins and free cash flow generation.
Matt Darin, CEO of Curaleaf, said, “As we continue to unite the strength of our brands, products and cultivation channels to lead the industry, we’re excited to join forces with Tryke to deliver additional value for our customers and retailers in Arizona, Nevada and Utah.”
This deal represents a significant opportunity with strong long-term growth potential, and we are now strategically positioned us to accelerate our growth in the West.
Matt Darin, CEO of Curaleaf
Tryke Companies Highlights:
- Four retail dispensaries in Las Vegas, Sparks, and Sun Valley, Nevada; two retail dispensaries in Phoenix, Arizona.
- Expansive product offering including a wide variety of in-house and third-party flower, concentrates, vape cartridges, edibles, topicals and CBD products.
- Extensive portfolio of processing licenses with 30,000 square feet of cultivation; capacity to expand to 80,000 square feet over the next three years.
The transaction consideration includes an initial payment at closing of US$10 million in cash and 2.7 million shares, and additional cash and shares consideration of US$75 million and 16.5 million Subordinate Voting Shares, to be paid in three installments on the first, second and third anniversaries of the closing, for a total consideration of US$181 million. Contingent consideration of up to 1 million Subordinate Voting Shares may be paid in 2023 based on the business exceeding certain EBITDA targets for the year 2022.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, and Grassroots provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, Curaleaf currently operates in 21 states with 144 dispensaries, 29 cultivation sites, and employs over 6,000 team members. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Canadian Securities Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.