Consolidation of the cannabis industry is inevitable as the market matures.
Heading into 2022, numerous forecasts predicted another flurry of M&A activity after an energized 2021. With nearly three months of the year complete, opinions are split on M&A activity so far.
M&A In 2022 Is On Fire
In one camp, sources say that M&A is right on track with forecasts calling for another year of consolidation.
Matt Hawkins, a managing partner at Entourage Effect Capital, said significant M&A deals appear on the single-state and national levels.
Hawkins cited various examples, including Cresco Labs Inc CRLBF recently announced plans to acquire Columbia Care Inc CCHWF for $2.1 billion. He also noted Harborside Inc HBORF deals to acquire Urbn Leaf and Loudpack to form StateHouse Holdings.
“It’s evident that M&A is driving industry growth for the foreseeable future,” Hawkins said.
Julie Herzog, a partner at Fortis Law Partners, agreed “in the sense that we’re continuing to see major players focused on ensuring they remain number one through mergers and acquisitions.”
She said smaller companies are trying to stand out as attractive acquisitions by becoming regional or product categories leaders.
Going back to October 2021, Herzog cites Canopy Growth Corp’s CGC $300 million purchase of Wana Brands, pending THC legalization in the US, as an example of things to come.
“I expect to continue to see many similarly structured deals and am encouraging my clients to begin preparing their companies for…
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Consolidation of the cannabis industry is inevitable as the market matures.
Heading into 2022, numerous forecasts predicted another flurry of M&A activity after an energized 2021. With nearly three months of the year complete, opinions are split on M&A activity so far.
M&A In 2022 Is On Fire
In one camp, sources say that M&A is right on track with forecasts calling for another year of consolidation.
Matt Hawkins, a managing partner at Entourage Effect Capital, said significant M&A deals appear on the single-state and national levels.
Hawkins cited various examples, including Cresco Labs Inc CRLBF recently announced plans to acquire Columbia Care Inc CCHWF for $2.1 billion. He also noted Harborside Inc HBORF deals to acquire Urbn Leaf and Loudpack to form StateHouse Holdings.
“It’s evident that M&A is driving industry growth for the foreseeable future,” Hawkins said.
Julie Herzog, a partner at Fortis Law Partners, agreed “in the sense that we’re continuing to see major players focused on ensuring they remain number one through mergers and acquisitions.”
She said smaller companies are trying to stand out as attractive acquisitions by becoming regional or product categories leaders.
Going back to October 2021, Herzog cites Canopy Growth Corp’s CGC $300 million purchase of Wana Brands, pending THC legalization in the US, as an example of things to come.
“I expect to continue to see many similarly structured deals and am encouraging my clients to begin preparing their companies for…
