Curaleaf Reports Record 2020 Financial Results, Announces Acquisition of Europe's EMMAC Life Sciences
On the same day it reported record-breaking 2020 financial results, Massachusetts-based Curaleaf Holdings (CSE: CURA, OTCQX: CURLF) said it would become the first U.S. multistate operator (MSO) to “meaningfully” enter Europe.
Curaleaf today announced plans to acquire EMMAC Life Sciences, the largest independent cannabis company in Europe.
The cash-and-stock transaction is valued at $286 million and is expected to close in the second quarter of 2021.
The deal will include roughly $50 million in cash and 17.3 million subordinate voting shares, Curaleaf executive chairman Boris Jordan confirmed during a call with investors and analysts.
An additional $57 million in cash and stock is also up for grabs if EMMAC hits certain performance targets.
“This milestone transaction will give Curaleaf a leading presence in key European medical cannabis markets including the United Kingdom, Germany, Italy, Spain, and Portugal, among others,” Jordan said via the release.
The foray into Europe, a market that Curaleaf believes could one day be worth more than $120 billion, comes after the company posted impressive year-over-year managed revenue growth of 161% to $653 million.
Curaleaf’s 2020 fourth quarter managed revenue also grew 186%, to more than $233 million, versus the same period in 2019. Meanwhile, the company’s adjusted EBITDA grew a whopping 456% to $144 million.
"Curaleaf's record fourth quarter results reflected the benefit of our acquisition of Grassroots, which expanded our presence into 6 new states, including high-growth markets such as Illinois and Pennsylvania as well as the continued ramp up of Select, which is now in 17 states,” CEO Joe Bayern said via a release.
Additional 2020 highlights:
- Curaleaf completed eight acquisitions: Select, Grassroots, Curaleaf NJ, Arrow, MEOT, Remedy, Blue Kudu and ATG
- It expanded retail operations from 51 to 96, and cultivation sites from 14 to 23. It doubled processing sites from 15 to 30, and expanded from 14 states to 23.
- The company's R&D team created and launched 84 new formulated products
- It increased retail revenue 205% to $423.2 million, compared to $138.7 million in 2019.
- It grew wholesale revenue 354% to $163 million in 2020, compared to $35.1 million in 2019
Additionally, Curaleaf said it raised $240.6 million via a public offering of 18,975,000 subordinate voting shares earlier this year.
“In 2021, we expect to see the positive benefits of the transformative legalization of adult-use cannabis in Arizona and New Jersey,” Bayern added via the release. “As we have stated, we believe New Jersey will accelerate the potential of future adult-use in key states such as New York, Pennsylvania and Connecticut. Each of these markets present an enormous growth opportunity for us, as Curaleaf is the only MSO with a leading presence in every one of these states."
Additional insights and commentary will be published after the company’s earnings call.
News releases are linked below.