Curaleaf Holdings, Inc. has completed its acquisition of Tryke Companies, a privately held vertically integrated, multi-state cannabis operator. 

The transaction includes an initial payment at closing of $10 million in cash and 2.7 million shares, with an additional $75 million and 16.5 million subordinate voting shares to be paid in three installments on the first, second and third anniversaries of the closing, for a total consideration of $181 million. Contingent consideration of up to one million subordinate voting shares may be paid in 2023 based on the business exceeding certain EBITDA targets in 2022.

With the closing of the transaction, Curaleaf's national footprint has reached 29 cultivation sites and 144 dispensaries nationwide.

"We are pleased to welcome Tryke to the Curaleaf family as we expand our operations and bolster our competitive position in three key growth markets,” said Boris Jordan, founder and executive chairman of Curaleaf. “This strategic transaction expands our U.S. presence and yields meaningful benefits for all of our stakeholders. The acquisition is immediately accretive to our EBITDA margins and free cash flow generation."

Tryke Companies has four retail dispensaries in Las Vegas, Sparks, and Sun Valley, Nevada and two retail dispensaries in Phoenix, Arizona. Product offerings include in-house and third-party edibles, flower, concentrates, vape cartridges, topicals and CBD products. It has 65,000 sq. ft. of cultivation, with capacity to expand to 80,000 sq. ft. over the next three years.

"As we continue to unite the strength of our brands, products and cultivation channels to lead the industry, we're excited to join forces with Tryke to deliver additional value for our customers and retailers in Arizona, Nevada and Utah,” said Matt Darin, CEO of Curaleaf. “This deal represents a significant opportunity with strong long-term growth potential, and we are now strategically positioned to accelerate our growth in the West."

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