New York City-based Curaleaf Holdings Inc., an international provider of consumer cannabis products, has entered into a definitive agreement to acquire Deseret Wellness, one of the largest cannabis retail operators in Utah, in a cash and stock transaction valued at approximately $20 million. The transaction is expected to close soon, subject to customary closing conditions.
The acquisition of Deseret includes three retail dispensaries located in Park City, Provo and Payson, with combined annualized revenue of approximately $14 million. “Deseret immediately strengthens Curaleaf’s retail footprint in Utah, providing the state’s medical patients with a wide variety of quality products, including cannabis flower, vape cartridges, edibles and concentrates. Curaleaf currently owns a retail operation in Lehi, bringing its Utah dispensary footprint to four, with 150 in 19 states nationwide.
“We are pleased to continue Curaleaf’s expansion in Utah with the acquisition of Deseret Wellness,” said Boris Jordan, executive chairman of Curaleaf. “This deal represents the largest cannabis retail change of ownership in the state’s history and bolsters our strong position in the market with an attractive portfolio of retail assets. On behalf of the board of directors and management team, I look forward to welcoming Deseret to the Curaleaf family.”
According to data released by the Utah Department of Health and Human Services Center for Medical Cannabis, the number of active medical cannabis patients in Utah increased by 51 percent in 2022, with 65,016 registered medical patients reported in February. Utah's net cannabis sales totaled $118.7 million in 2022, up 58.6 percent from the year prior.