Acquires Three Operating Dispensaries in Northeast Pennsylvania
Purchase Price Represents a Mid-Single Digit Multiple of KCR’s Expected 2021 EBITDA
NEW YORK and TORONTO, May 3, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today reported it has closed the previously announced acquisition of GuadCo, LLC and KCR Holdings LLC (collectively “KCR”) for an implied enterprise value of US$70 million (the “transaction”). The transaction adds three retail dispensaries located in Bethlehem, Allentown and Stroudsburg to complement the Company’s existing retail footprint in Southeastern Pennsylvania.
As an operator of three well managed dispensaries in the Northeast region, KCR expands TerrAscend’s retail footprint, diversifies the Company’s customer base and enhances margins through deeper vertical integration of its market leading brands Kind Tree, Ilera, and Prism.
“With the closing of this acquisition, TerrAscend doubles our owned footprint to six dispensaries and further solidifies our leadership position as a branded manufacturer in Pennsylvania, where we distribute our products to 100% of the dispensaries in the Commonwealth,” said Jason Wild, Executive Chairman of TerrAscend.
Transaction Details
TerrAscend previously owned 10% of KCR and has acquired the remaining 90% of the equity for total consideration of $63 million, comprised of $36 million in stock, $20.25 million in cash and a $6.75 million note. The purchase price is expected to represent a mid-single digit multiple of KCR’s 2021 EBITDA.
The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
