The $2 billion merger of multi-state operators Cresco Labs and Columbia Care was mutually terminated on July 31, 2023 — more than one year after the companies announced the acquisition. In March 2022, Chicago-based Cresco Labs sought to purchase Columbia Care in an all-stock transaction that would have created the nation’s largest cannabis company. However, the deal started to fall apart after both companies failed to divest the necessary assets for approvals by the deadline on June 30, 2023.
Neither company was required to pay penalties or fees for terminating the acquisition.
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders,” Cresco CEO Charles Bachtell said in press release. “We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction.”
In the same press release, Columbia Care CEO Nicholas Vita said: “After careful consideration, we are confident in the mutual decision to move forward as separate, standalone companies. This is the best path forward for Columbia Care’s employees, customers and shareholders.”
At the time of this writing, Cresco’s market cap was about $466 million, down from the $2.7 billion market cap the company had when the deal was announced in 2022; the market cap for Columbia Care was around $168 million.
— Patrick Wagner