Columbia Care Completes Medicine Man Acquisition
Press Release- NY
02 November 2021
Adds four Denver-metro retail locations and a 35,000-square-foot indoor cultivation facilityImmediately accretive to Columbia Care’s adjusted EBITDA and cash flow from operationsSolidifies Columbia Care’s position as the leading retailer, cultivator and manufacturer in Colorado
NEW YORK, Nov. 1, 2021 – PRESS RELEASE – Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and distributors of cannabis products in the United States, announced it has completed its acquisition of Medicine Man, a premier, vertically integrated Colorado-based cannabis company that has been serving the Denver metro area since 2009.
The total upfront consideration was $42 million, comprised of $8.4 million in cash and $33.6 million in stock, with the potential for an additional milestone payment based on 2021 performance. The transaction is immediately accretive to adjusted EBITDA and cash flow from operations. The upfront consideration of $42 million represents a multiple of approximately 4.5 times projected 2021 EBITDA.
“As the second largest cannabis market in the world, Colorado has become a global bellwether for adult-use programs and continues to show strong organic growth. The acquisition of Medicine Man enhances our position as the leader in the state by combining with a recognized operator that has been a consistent outperformer in the Colorado market since its founding,” Columbia Care CEO Nicholas Vita said. “We are grateful to the cities of Aurora, Denver and Thornton, and the state of Colorado, for their support, as well as to the Medicine Man team that has been terrific to work with throughout this process. Our vision and values are aligned, and we look forward to expanding our Columbia Care family with the addition of those who made Medicine Man such a successful company.”
This acquisition adds one cultivation facility and four dispensaries to Columbia Care’s Colorado operations, including the Medicine Man Longmont location, which is anticipated to close in Q1 2022. Columbia Care’s footprint in Colorado will now total 26 dispensaries and six cultivation and manufacturing facilities, including those under The Green Solution brand.
“This marks the next step in the evolution of Medicine Man, from an ambitious family-run company to part of a best-in-class operation. Our experience with Columbia Care through this process has reinforced the reasons we decided to partner with them. The team has been incredible, fair and efficient over the last few months. Our focus now turns to executing their vision and bringing as much value as possible to the Columbia Care operation,” Medicine Man CEO Sally Vander Veer said.