Chicago-based marijuana retailer Cresco Labs announced Monday that it is acquiring Origin House, a California cannabis distributor for $850 million.
The companies are calling the deal the largest public cannabis company acquisition ever in the U.S. The acquisition also makes Cresco one of the largest vertically-integrated multi-state cannabis operators in the country as it gives them a larger footprint in California, which is excepted to be a $7.7 billion cannabis market in 2022, according to Arcview Market Research/BDS Analytics.
Origin House currently delivers more than 50 cannabis brands to over 500 dispensaries in California. After the acquisition closes, Cresco says it will be in more than 725 dispensaries across 11 states.
“The acquisition of Origin House is another example of our focused and disciplined approach to creating a meaningful presence in key cannabis markets through excellence in brand development and distribution,” said Cresco Labs CEO and Co-founder Charlie Bachtell in a statement. “It establishes Cresco Labs as the leading multi-state operator with one of the largest distribution platforms in California.”
The acquisition by Cresco, which went public in December on the Canadian Securities Exchange, is just the latest large deal made by a Chicago marijuana company. In March, Grassroots Cannabis raised $90 million in venture capital funding, bringing its total amount raised to $165 million since it launched in 2014. Additionally, Verano Holdings was acquired last month for $850 million after raising $120 million in financing.
