Curaleaf Acquires Los Sueños Expanding its Geographic Market Presence

Curaleaf, with headquarters in Wakefield, Massachusetts, is a multistate marijuana operator.  Currently operating in 23 states with 106 dispensaries, 23 cultivation sites, and 30 processing sites.   The company entered the Colorado market with the purchase of the Denver-based edibles producer BlueKudo last year. They are now adding to their Colorado holdings with the acquisition of Los Sueños Farms, located in Pueblo County. 

The Los Sueños acquisition includes three outdoor cannabis cultivation facilities in Pueblo totaling 66 acres, an indoor cultivation facility and two adult-use retail stores.  After Denver, Pueblo County is now the second largest cannabis cultivator in the state, with the marijuana industry employing about 5 percent of the county’s workforce. The proposed acquisition is worth $67 million, 61% of which will be paid in Curaleaf stock, 29% in cash at closing and 10% in assumed debt.  There is an additional $8 million of potential payment by Curaleaf if 2022 performance incentives are achieved.

With the acquisition of Los Sueños, Curaleaf will add over 50,000 pounds per year of low-cost wholesale capacity to its Colorado holdings.  The new production capability will further enhance Curaleaf’s Select brand reach which is already available at 230 Colorado dispensaries.

With this transaction Curaleaf acquires one of the largest outdoor cannabis cultivation facilities in the U.S. It appears that Curaleaf is building a strong multistate network and would be considered a major player when cannabis is legalized on a federal level and interstate commerce is legal.

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