Benzinga | Jan 19, 2022 10:59AM EST

Curaleaf Closes $221M Bloom Acquisition, Opens Two More Cannabis Dispensaries In Florida

Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) has wrapped up its previously announced acquisition of Bloom Dispensaries, the vertically integrated, single state cannabis operator in Arizona.

What Happened

Under terms of the agreement, Curaleaf paid an aggregate purchase price of approximately $211 million on a cash and debt-free basis with target working capital.

At the close of the deal, $51 million in cash will be paid with the remaining roughly $160 million to be paid through the issuance of three promissory notes, including two promissory notes of $50 million each and one of $60 million, which are due respectively on the first, second and third anniversary of the closing of the deal.

The company may pay the third promissory note by issuing up to 4.88 million of its subordinate voting shares $13.85 per share on the third anniversary of closing, the company said Wednesday.

Why It Matters

The acquisition includes four retail dispensaries in Phoenix, Tucson, Peoria and the only dispensary in Sedona, as well as two adjacent cultivation and processing facilities in north Phoenix totaling approximately 63,500 square feet.

With the close of the transaction, Curaleaf's retail footprint has reached 13 dispensaries in the Grand Canyon State.

"Bloom is an excellent strategic fit for Curaleaf as it further expands our capacity and retail footprint in Arizona with an attractive set of assets, enabling us to better serve the state's US$1.4 billion-plus annual market opportunity," said Boris Jordan, executive chairman of the Massachusetts-based company. "Adding to these benefits, Bloom will be immediately accretive to our adjusted EBITDA margins."

CEO Joseph Bayern highlighted that Arizona "represents a significant market opportunity with strong long-term growth potential, and we believe the combination of our two companies will enable Curaleaf to accelerate our growth strategy in the state."

In addition, Bloom had roughly $66 million in 2021 revenue and EBITDA margins of more than 40%.

Two New Florida Dispensaries To Kick Off Cannabis Sales

Separately, Curaleaf announced its plans to open two new dispensaries in Florida by the end of this month, bringing its retail footprint to 44 dispensaries statewide and 123 across the country.

Located at 13755 North Dale Mabry Highway, the Tampa Bay shop has been selling cannabis since Jan. 15.

Curaleaf Largo, located at 10289 Ulmerton Road, is expected to open later this month, subject to final regulatory approvals.

In December, Curaleaf added four additional dispensaries in Stuart, Lady Lake, Wesley Chapel and Miami.

"We are excited to kick off this year continuing our momentum of expansion and growth in Florida," said Matt Darin, president of Curaleaf. "Throughout this year, our patients can expect to see Curaleaf continue to lead the Florida market with new innovative products and convenient new locations."

More recent news from Curaleaf:

* Why Curaleaf Remains Among Top Cannabis Picks - Analyst's Thoughts On Recent Acquisition Spree

* Curaleaf Expands In Florida -- Will Open Four New Cannabis Dispensaries For Total Of 117 Nationwide

* Curaleaf To Buy Arizona Dispensary Natural Remedy For $13M In Stock And Cash

* Cannabis Dispensary Roundup: Curaleaf To Launch Four Shops In Florida, Trulieve, Lume & C3 Industries Open Stores

CURLF Price Action

Curaleaf's shares traded 0.21% lower at $8.23 per share at the time of writing on Wednesday.

Photo: Courtesy of Mike Petrucci on Unsplash