Thursday, December 8, 2022

Curaleaf Announces Acquisition of Bloom Dispensaries

- Bloom further strengthens Curaleaf's presence in the highly attractive Arizona market, expanding the Company's cultivation, processing, and retail assets in the state - Acquisition will be immediately accretive to Curaleaf's adjusted EBITDA margin upon close - Upon close of recently announced acquisitions, the Company's retail footprint increases to 16 dispensaries in Arizona and 128 nationwide

Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) (“Curaleaf” or the “Company“), a leading international provider of consumer products in cannabis, today announced that it has entered into a definitive agreement to acquire Bloom Dispensaries (“Bloom”), a vertically integrated, single state cannabis operator in Arizona in an all cash transaction valued at approximately US$211 million (the “Transaction”). The Transaction is expected to close in January 2022, subject to customary approvals and conditions.

The proposed transaction with Bloom includes four retail 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 drawing millions of tourists every year. In addition, Bloom strengthens Curaleaf’s production capabilities in Arizona with the addition of two adjacent cultivation and processing facilities located in north Phoenix totaling approximately 63,500 sq. ft. of space. Finally, Bloom has an attractive financial profile, generating expected 2021 revenue of approximately $66 million and EBITDA margins of more than 40%. Following the close of Bloom and the previously announced acquisitions of Tryke Companies and Natural Remedy Patient Center, Curaleaf’s retail footprint will increase to 16 dispensaries in Arizona and 128 nationwide.

Boris Jordan, Executive Chairman of Curaleaf, stated, “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.”

Joseph Bayern, CEO of Curaleaf, stated, “We are excited to announce the acquisition of Bloom, which shares Curaleaf’s mission of delivering the highest-quality products and superior service to patients and customers while striving to make a positive impact in the communities we serve. Bloom has built a strong and profitable business, and we believe the combination of our two companies will enhance our competitive position and ability to continue gaining share in the highly attractive Arizona market.”

Under the terms of the agreement, Curaleaf will pay US$51 million in cash at closing, with the remaining approximately US$160 million paid in three promissory notes of $50 million, $50 million, and $60 million due, respectively, on the first, second and third anniversary of closing of the transaction. The notes will be recourse only to shares and assets of Bloom and will not be guaranteed by any Curaleaf entity.

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