A Cannabis Consolidation Binge Is Creating Top Tier Companies
Two more major deals were announced on Tuesday.
As the year comes to a close, the cannabis industry is on a consolidation binge. Two big deals were announced today piling on after last week's big move by Aphria (APHA) and Tilray (TLRY) . Ayr Strategies (AYRWF) is buying Liberty Health Science (LHSIF) in a deal valued at $290 million, and Columbia Care (CCHWF) is buying privately-held Green Leaf Medical in a deal valued at $240 million.
Ayr Strategies
Florida
Ayr Strategies has grown quickly through acquisition and this latest purchase gets the company exposure in two of the three best medical markets in the country. The all-stock deal for Liberty is valued at $290 million. In this transaction, Ayr will be getting Liberty's 387-acre cultivation campus in Gainesville, FL with over 300,000 sq. ft. of current production facilities in operation, 28 open retail dispensaries, seven completed and ready-to-open dispensaries, and seven dispensaries currently under construction. Liberty currently employs 335 people, all of whom are expected to be retained by Ayr. Ayr said it plans to spend approximately $15 million in capital expenditures in 2021 to improve and expand the Gainesville cultivation campus, as well as expand Liberty's dispensary footprint.