Cresco Labs, one of the largest vertically integrated, multistate cannabis operators in the United States, has entered into a definitive agreement to acquire Bluma Wellness Inc.
WHO: Bluma Wellness owns and operates a vertically integrated, licensed medical cannabis company in the state of Florida doing business as “One Plant Florida.” The business cultivates, processes, dispenses, and retails medical cannabis to qualified patients in the state of Florida through multiple retail dispensaries and an innovative next-day door-to-door e-commerce home delivery service, thereby offering convenient access for its customers and meeting the demands of an evolving retail landscape. Bluma Wellness may enter into other US states where the production, distribution, and use of cannabis is permitted under state law.
Cresco Labs is one of the largest vertically integrated, multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods approach, Cresco Labs is the largest wholesaler of branded cannabis products in the US. Its brands are designed to meet the needs of all consumer segments and is comprised of some of the most recognized and trusted brands including Cresco, Remedi, High Supply, Cresco Reserve, Good News, Wonder Wellness, FloraCal Farms, and Mindy’s Chef Led Artisanal Edibles created by James Beard award-winning chef Mindy Segal. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer.
WHY: This deal supports Cresco Labs’ strategy to build a strategic geographic footprint and achieve material market positions. The acquisition of Bluma creates a meaningful presence in all 7 of the 10 most populated states in the country with cannabis programs.
IN THEIR OWN WORDS: “We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way—we identified Bluma as having the right tools and key advantages for growth,” said Charles Bachtell, CEO of Cresco Labs. “Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets.”
Bachtell continued, “In 2020, we demonstrated the growth and leverage that can be created by focusing only on the most strategic markets, executing high-quality cultivation at scale, and marrying it with a targeted, consumer-focused model of high-volume retail. In 2021, it’s rinse and repeat. We’re using the same playbook to go deeper in strategic states, including Florida—we look forward to bringing our Cresco Labs brands and our Sunnyside stores to the Sunshine State!”
“Bluma’s high-quality cultivation operations, scaled delivery platform, and strategic retail investments combined with Cresco Labs’ track record of execution and capital allocation creates the best path forward to accelerate growth for our business in Florida,” said Brady Cobb, CEO of Bluma. “Our management team took the responsibility to seriously assess potential partners and we’re thrilled to be joining an organization that aligns operationally and shares our passion for creating quality cannabis products.”
DETAILS:
