Trulieve Cannabis Corp., a Florida-based multi-state cannabis company with a large presence in the U.S Northeast and Southeast, is buying medical cannabis company Harvest Health & Recreation Inc. in a $2.1 billion deal announced today which will expand Trulieve into new markets in the Northeastern and Southwestern United States and provide a combined estimated 2021 revenue of $1.2 billion.
The combined business will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets.
The deal bolsters Trulieve’s expansion in US northeast and southeast hubs in Florida, Pennsylvania and Maryland, and establishes a southwest hub in core markets including Arizona, where recreational adult use of cannabis was recently legalized.
“Today’s announcement is the largest and most exciting acquisition so far in our industry, creating the most profitable public multi-state operator. Importantly, our companies share similar customer values with a focus on going deep in core markets. This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth,” stated Kim Rivers, Chief Executive Officer of Trulieve. “Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona. Trulieve and Harvest are leaders in our markets, recognized for our innovation, brands, and operational expertise with true depth and scale in our businesses. We look forward to providing best-in-class service to patients and customers on a broader national scale as we create an iconic US cannabis brand.”
“We are thrilled to be joining Trulieve, a company that has achieved unrivaled success and scale in its home state of Florida,” said Steve White, Chief Executive Officer of Harvest. “As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult use sales in Arizona will add tremendous value to the combined organization as it continues to expand and grow in the coming years.”
Rivers is married to J.T. Burnette, a Tallahassee developer, entrepreneur and hotel owner who is under indictment in federal court, alleged to have taken part in a racketeering scheme organized by former Florida Democrat Party Chair and Tallahassee City Commissioner and Mayor Scott Maddox.
Trulieve also has close ties to Halsey Beshears, the state’s former Department of Business and Professional Regulation head and a seven-year state Republican House member from Jefferson County who is, according to the Tallahassee Democrat, caught up in a federal sex trafficking investigation involving Republican Congressman Matt Gaetz and former Seminole County Tax Collector Joel Greenberg.
According to the Democrat, Beshears’ family owned Simpson Nurseries, which teamed up with Hackney Nurseries to create Trulieve with Rivers.