That makes Curaleaf the biggest cannabis company globally by sales, with expected annual revenue of about $1 billion, executive chairman Boris Jordan told CNN Business.
During the pandemic, the amount and value of M&A deals across all industries have plunged. According to the law firm White & Case, the total value of deals announced in the first half of 2020 was $901.7 billion, down 53% from the prior year. Volume tumbled 32% to just under 7,000 mergers and acquisitions.
Yet, in the past year, Curaleaf has snapped up 15 companies — mostly smaller, established operators in states such as Colorado, Florida and Arizona.
’A big bet’
Growing bigger would help Curaleaf better compete against any consumer product giants that enter the space if the US government were to legalize cannabis, Jordan said.
”Obviously it’s a big bet,” Jordan said. “It could go wrong,” especially if the federal government changes its hands-off approach from enforcement or doesn’t change its regulatory stance.
“But I believe the genie is out of the bottle” on federal legalization, he added.
Still, the company hasn’t been immune to broader trends. The Grassroots acquisition closed at an estimated $830 million, down from the previously announced value of $875 million when the deal was first announced more than a year ago.
And some analysts warn that expanding too fast has proven to be a risky move in the cannabis industry.