Vireo Growth
Deal News | Dec 20, 2024 | EIN
Vireo Growth Inc., an independent multi-state cannabis company, has announced a merger involving Proper Brands and three other cannabis companies, totaling $397 million in all-stock transactions. With this merger, Vireo aims to extend its operational reach across seven states with 48 dispensaries and enhance its cannabis offerings. Proper Brands will continue to operate under its established identity in Missouri, maintaining its commitment to the community while accessing a larger resource pool for development. The merger also includes companies like Deep Roots Harvest, WholesomeCo Cannabis, and the acquisition of The Flowery via a Memorandum of Understanding. This expansion is estimated to generate a proforma revenue of $394 million and EBITDA of $94 million by 2024. Alongside, Vireo announced new executive appointments to strengthen its leadership team: John Mazarakis as CEO and Co-Executive Chairman and Tyson Macdonald as CFO. Mazarakis emphasizes a decentralized, locally-empowered business strategy leveraging the proprietary Arches technology platform to adapt swiftly to market demands.
Sectors
- Cannabis
- Mergers and Acquisitions
Geography
- United States – The merger and expansion of Vireo Growth Inc. and its subsidiaries are taking place throughout multiple states in the U.S.
- Missouri – Proper Brands, a key participant in the merger, is based in Missouri, where it operates several dispensaries.
- Nevada – Deep Roots Harvest, a participant in the merger, expands Vireo's operations to Nevada.
- Utah – WholesomeCo Cannabis, part of the merger, expands Vireo's presence into Utah.
- Florida – An acquisition anticipated through a Memorandum of Understanding, involving The Flowery, extends Vireo's operations to Florida.
Industry
- Cannabis – This industry classification is relevant as the article discusses a merger involving multiple cannabis companies expanding across states.
- Mergers and Acquisitions – The article is centered on the merger of several cannabis companies, making this classification highly relevant.
Financials
- $397 million – The total value of the all-stock transactions involved in the merger.
- $394 million – Estimated proforma revenue for Vireo in 2024 post-merger.
- $94 million – Estimated proforma EBITDA for Vireo in 2024 post-merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Vireo Growth Inc. | Bidding Company | Company | A multi-state cannabis operator leading the merger to expand its footprint across seven states. |
| Proper Brands | Target company | Company | A Missouri-based cannabis company with 11 dispensaries, maintaining its identity post-merger. |
| Deep Roots Harvest | Target company | Company | A cannabis company that extends Vireo's operations into Nevada. |
| WholesomeCo Cannabis | Target company | Company | A cannabis company playing a part in extending Vireo's presence in Utah. |
| The Flowery | Target company | Company | A Florida cannabis company anticipated for acquisition through a Memorandum of Understanding. |
| Arches | Other company | Company | A cannabis delivery and analytics platform included in the merger. |
| John Pennington | CEO of Proper Brands | Person | Founder and CEO of Proper Brands, who commented on the merger. |
| John Mazarakis | CEO and Co-Executive Chairman of Vireo | Person | Recently appointed CEO leading the strategic direction post-merger. |
| Tyson Macdonald | CFO of Vireo | Person | Appointed CFO to oversee the financial management post-merger. |