Cresco Labs acquires nine Pennsylvania dispensaries for $50 million

Cresco Labs has finalized a $50 million acquisition of PharmaCann Penn, LLC, acquiring 100% of the company's outstanding equity interests. The deal includes nine operational medical marijuana dispensaries in Pennsylvania.

The transaction was funded through a combination of cash and a seller note and was completed on a cash-free, debt-free basis. Following the acquisition, Cresco Labs identifies itself as the largest medical marijuana retailer and wholesaler in Pennsylvania, which is the second-largest medical marijuana market in the United States, having generated over $1.1 billion in sales last year.

CEO Charlie Bachtell stated that the acquisition expands the company's retail footprint in a core market and allows for greater leverage of existing infrastructure. Cresco expects the move to immediately increase revenue, margins, and cash flow.