Trulieve Becomes Largest U.S. Cannabis Company
Written by on October 1, 2021
Trulieve just acquired Harvest Health & Recreation, officially making them the largest cannabis company in the nation.
Trulieve finalized this purchase today for $2.2 billion. The company, based out of Tallahassee, and founded to be a medical cannabis entity, the largest legal cannabis company to date.
“Trulieve is primarily a vertically integrated, ‘seed-to-sale’ company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida,” according to a press release. “Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded dispensaries throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is also a licensed operator in California, Massachusetts, Connecticut, Pennsylvania and West Virginia.”
Separately, Trulieve and Harvest Health & Recreation reported a combined income of $317.6 million in the second quarter of the year, not a small chunk of change. Truileve also gained a major cash acquisition with their $350 in debt financing back in June, and Harvest received $55 million recently from a licensing sale in Florida. Trulieve brought in $289 million in cash and cash alternatives as of June, and Harvest brought in $71 million.
Trulieve brought in $215 million in revenue during the second quarter, with income of almost $41 million. Harvest reported more than $102 million in revenue, for the combined $318 million.
To date, this is the highest among public reporting cannabis companies in this country, putting Trulieve at the top.
“Today’s announcement is the largest and most exciting acquisition so far in our industry, creating the most profitable public multi-state operator. Importantly, our companies share similar customer values with a focus on going deep in core markets. This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth,” stated Kim Rivers, Chief Executive Officer of Trulieve.
This acquisition allows Trulieve to continue its expansion in growing markets across the nation. “Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona. Trulieve and Harvest are leaders in our markets, recognized for our innovation, brands, and operational expertise with true depth and scale in our businesses. We look forward to providing best-in-class service to patients and customers on a broader national scale as we create an iconic U.S. cannabis brand.”
“We are thrilled to be joining Trulieve, a company that has achieved unrivaled success and scale in its home state of Florida,” said Steve White, Chief Executive Officer of Harvest. “As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult use sales in Arizona will add tremendous value to the combined organization as it continues to expand and grow in the coming years.”
In total, Trulieve now has a total inventory of 149 dispensaries and three regional hubs, and the company operates across 11 states. This also significantly puts Florida on the map as a leading market for cannabis, despite the state’s slow start in the recreational space. Arizona and Pennsylvania are other notable leading markets.
“This combination brings together two companies with depth and scale in key markets, providing a platform for growth for years to come,” said Harvest CEO Steve White. “Trulieve’s customer-centric values match well with Harvest’s dedication to improving lives through the goodness of cannabis.”
Now, due to this acquisition, Trulieve will have access to Harvest Brands. Under the Harvest umbrella are Alchemy and Roll One, both popular in the local market.
When the sale went down, those with Harvest shares received 0.117 in subordinate voting shares of the company. Trulieve gave out 50,874,175 new shares in exchange for all of Harvest’s shares. Harvest is based in Canada, and thus the sale was compliant with British Columbia’s Business Corporations Act.