Cannabis retailer Curaleaf to expand US footprint with Grassroots buy
Adds details on deal, background
July 17 (Reuters) - U.S. cannabis retailer Curaleaf Holdings Inc CURA.CD said on Wednesday it would buy privately held GR Companies Inc (Grassroots) in a cash and stock deal valued at about $875 million to expand its footprint in the United States.
The deal will expand Curaleaf's presence to 19 states from 12, including Illinois, which in June became the 11th state in the United States to legalize recreational use of marijuana by adults.
Illinois is the second state to legalize small amounts of marijuana for adult use solely through the legislative process and the first to authorize retail sales of the substance legislatively.
The combined entity will have 131 dispensary licences, 68 operational locations and 20 cultivation sites, the company said.
Curaleaf said in May it would buy Cura Partners Inc's Select brand in an all-stock deal valued at C$1.27 billion to create the world's largest cannabis company by revenue.
The industry has seen a rise in deals and partnerships as Canadian companies look to push into the United States, where more and more states are legalizing recreational use of marijuana.
The deal, which is composed of $75 million in cash, is expected to close early next year.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Rashmi Aich)