Curaleaf Holdings (TSE: CURA), a leading international supplier of consumer cannabis products, announced Wednesday it has completed its previously announced acquisition of Bloom Dispensaries, a single, vertically integrated state-owned cannabis operator in Arizona.
Expands in Arizona
Curaleaf paid an aggregate purchase price of approximately $211 million.
With the closing of the transaction, Curaleaf’s business footprint has grown to 13 dispensaries in Arizona and 121 nationwide.
The deal with Bloom includes four dispensaries located in the cities of Phoenix, Tucson, Peoria, and the only dispensary currently in Sedona.
Following Bloom’s closing and previously announced acquisitions of Tryke Companies and the Natural Remedy Patient Center, Curaleaf’s business footprint will grow to 16 dispensaries in Arizona and 128 nationwide.
Management Commentary
Curaleaf’s Chairman Boris Jordan said, “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 $1.4 billion-plus annual market opportunity. Adding to these benefits, Bloom will be immediately accretive to our adjusted EBITDA margins. On behalf of the Board of Directors and management team, I am pleased to officially welcome Bloom to the Curaleaf family.”
Wall Street’s Take
Earlier in January, Cantor Fitzgerald analyst Pablo Zuanic kept a Buy rating on CURA while lowering its price target to $16.50 (C$20.62). This implies 103.6% upside potential.
The rest of the Street is bullish on CURA with a Strong Buy consensus rating, based on nine Buys and two Holds. The average Curaleaf Holdings price target of C$23.28 implies 130.6% upside potential to current levels.
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