Cresco Labs and Columbia Care haven’t completed the divestitures needed for regulatory approvals to close Cresco Lab’s acquisition of Columbia Care.
The companies reported the development June 30, the outside date they mutually set in February for the completion of the acquisition. The date had been extended from March 31 to June 30.
Cresco Labs and Columbia Care said they are “working amicably with respect to the next steps in relation to the transaction,” adding that they will provide updates in the future.
In its first-quarter financial and operating results, Cresco Labs reported it was collaborating “closely with Columbia Care on the required divestiture transactions to find a path forward that makes both strategic and financial sense,” noting there was no update on the timing of divestiture transactions.
Cresco Labs announced its intentions to acquire Columbia Care in March 2022. The acquisition would create the largest multi-state operator by pro-forma revenue, then estimated at $1.4 billion.
In November 2022, the companies announced they would sell certain assets in Illinois, New York and Massachusetts to an entity owned by Sean “Diddy” Combs for $185 million, creating the first minority-owned and operated, vertically-integrated multi-state operator.
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