Cresco Labs (CSE: CL) and Columbia Care (CSE: CCHW) announced on November 4 that they were divesting certain assets in New York, Massachusetts and Illinois. The undisclosed purchasing entity is owned by rapper Sean Combs and is acquiring the assets for a total of $185 million. This marks the 17th medical marijuana transaction of the year, according to the LevinPro HC database.
Cresco Labs is one of the largest vertically integrated multi-state cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry.
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 18 U.S. jurisdictions. Columbia Care operates 131 facilities including 99 dispensaries and 32 cultivation and manufacturing facilities, including those under development. In March 2022, Columbia Care was purchased by Cresco Labs for $2 billion.
Stoic Advisory Inc. and Solidum Capital Advisors are acting as financial advisors to Cresco Labs. Paul Hastings LLP is acting as US legal advisor to Cresco Labs. ATB Capital Markets and Gramercy Capital Group, LLC are acting as financial advisor to Columbia Care. Foley Hoag LLP is acting as US legal advisor to Columbia Care. Evercore and Empowerment IP Capital are acting as financial advisors to Combs. Goodwin Proctor is acting as US legal advisor to Combs.
Columbia Care is divesting assets in Brooklyn, Manhattan, as well as Rochester, New York retail assets production assets; an asset in Greenfield, Massachusetts; and an asset in Chicago, retail assets in Villa Park, Illinois and production assets in Aurora, Illinois.
Cresco Labs is divesting assets in New Hartford, New York; assets in Worcester, Massachusetts and both retail assets as well as production assets in Leicester, Massachusetts.
The transaction is Combs’ first investment in cannabis, and upon closing, will create the country’s first minority-owned and operated, vertically integrated multi-state operator. A portion of the purchase price will be payable upon closing and will comprise approximately $110 million in cash and approximately $45 million of seller notes.
