Curaleaf Holdings (TSE: CURA), a leading international supplier of consumer cannabis products, announced Tuesday it has signed a deal to acquire Bloom Dispensaries, a single, vertically integrated state-owned cannabis operator in Arizona.
Curaleaf Continues Arizona Expansion
The cash transaction is valued at approximately $211 million. The transaction is expected to close in January 2022, subject to customary approvals and conditions.
The proposed deal with Bloom includes four dispensaries located in the cities of Phoenix, Tucson, Peoria, and the only dispensary currently in Sedona, with a combined population of over 2.3 million and attracting millions of tourists each year.
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.
Curaleaf chairman Boris Jordan said, "We are pleased to continue Curaleaf's expansion in the state of Arizona with the acquisition of Bloom. In addition to bolstering our strong position in this key growth market with an attractive portfolio of retail and cultivation assets, Bloom will be immediately accretive to our adjusted EBITDA margins upon close. On behalf of the Board of Directors and management team, I look forward to welcoming Bloom to the Curaleaf family."
Wall Street's Take
On December 7, MKM Partners analyst William Kirk kept a Buy rating on CURA and set a price target of C$20. This implies 74.7% upside potential.
The rest of the Street is bullish on CURA with a Strong Buy consensus rating, based on nine Buys and one Hold. The average Curaleaf Holdings price target of C$23.83 implies 108.1% upside potential to current levels.