Last Friday, October 1st, Trulieve completed its acquisition of Harvest Health & Recreation Inc. The deal makes Trulieve the biggest and most profitable cannabis company in the world with combined 2020 Adjusted EBITDA of $266 million and combined 2021E consensus Adjusted EBITDA of $461 million.
The deal also meaningfully expands Trulieve’s retail footprint in key states and makes them the market leader in Florida and Arizona. In a recent Forbes article, CEO Kim Rivers commented:
“In addition to financial performance, Rivers also detailed the physical strength of the combined portfolio, explaining that, between the two entities, there will exist “149 stores, which represents approximately 37% more than our next closest competitor, and over 3.1 million square feet of cultivation, which is approximately 50% more than our next closest competitor.”
The deal also adds premium brands to Trulieve’s portfolio, including Harvest’s Alchemy and Roll One products. Years ago, Trulieve received sub-par reviews on some of their brands. However, they have worked hard to improve their products--especially on the flower side, and acquiring Harvest will only help diversify and strengthen their lineup.
Finally, the deal combines their operational expertise in winning licenses and quickly bringing new stores to market. Trulieve has 88 stores in Florida alone and are masters of finding compelling store locations, getting permits and opening ahead of schedule.
Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades domestically on the OTC exchange under the symbol TCNNF.