Cresco Labs to Acquire Cannabis Distributor Origin House
Chicago-based Cresco Labs has entered a $1.1 billion deal to acquire cannabis distributor Origin House, which is based in California. Cresco Labs is a cannabis grower, processor and retailer. Origin House delivers over 50 cannabis brands to more than 500 dispensaries in California, representing approximately 60 percent market penetration.
The deal represents the largest public company acquisition in the history of the U.S. cannabis industry. Upon completion of the transaction, as well as the receipt of licensure in Michigan and the closing of the company’s pending acquisition in Florida, Cresco Labs will have operations in 11 states, 23 facilities, more than 1.5 million square feet of cultivation, and licenses to operate up to 51 retail dispensaries. Cresco Labs brands will be sold in over 725 dispensaries across the United States.
The transaction is expected to be completed by the end of June 2019, subject to the satisfaction or waiver of applicable closing conditions.
Upon transaction completion, Marc Lustig will be appointed to the executive management team of Cresco Labs and will also serve as a member of the company’s board of directors. Lustig has 16 years of healthcare and capital markets experience in North America and Europe. He founded CannaRoyalty Corp (Origin House) in early 2015.
