Trulieve finalized its purchase of Harvest Health & Recreation for $2.2 billion, the company announced Friday. That makes the Tallahassee medical marijuana titan the largest legal cannabis company in the nation.
Florida Agriculture Commissioner Nikki Fried has a stake in Harvest worth $130,000.
The two companies separately reported a combined income of $317.6 million in the second quarter of 2021. Trulieve, with the acquisition, also sits on enormous cash capital for investment, with Trulieve in June announcing $350 million in debt financing and Harvest receiving $55 million from the sale of its Florida license. As of the close of June, Trulieve reported $289 million in available cash and cash alternatives, and Harvest reported $71 million.
In the second quarter of this year, Trulieve reported more than $215 million in revenue with a net income of nearly $41 million. Harvest, meanwhile, reported more than $102 million in revenue. The two companies combined brought in nearly $318 million in the second quarter, the highest among public reporting cannabis companies in the U.S.
“The closing of this Transaction marks a transformational milestone in our company’s history and positions Trulieve as the leading medical and adult-use cannabis operator in the U.S.,” said Trulieve CEO Kim Rivers. “I thank all our employees, both Trulievers and Harvesters, for their tireless efforts during this process. The combined footprint provides Trulieve with a solid foundation for continued growth and scale. We look forward to fully integrating Harvest as we continue to execute on our hub strategy in the U.S., creating an unrivaled brand and reputation in the marketplace and value for our shareholders.”
Company inventory now includes 149 dispensaries and three regional hubs, operating in 11 states. Florida remains one of the leading markets for the firm along with Arizona and Pennsylvania.
“This combination brings together two companies with depth and scale in key markets, providing a platform for growth for years to come,” said Harvest CEO Steve White. “Trulieve’s customer centric values match well with Harvest’s dedication to improving lives through the goodness of cannabis.”
The acquisition means Trulieve will now have access to Harvest brands, including its Alchemy and Roll One products, to offer to its in-house portfolio of cannabis offerings.
Regarding the deal, those holding shares of Harvest received 0.117 in subordinate voting shares of Trulieve. In total, Trulieve issued 50,874,175 new shares in exchange for all of Canada-based Harvest’s shares under terms compliant with the Business Corporations Act in British Columbia. Harvest on Oct. 4 will be dropped from the Canadian Securities Exchange.