Herbal Remedies Dispensaries, an operator of two licensed retail dispensaries in Illinois, is the latest acquisition by Ayr Wellness Inc. Ayr closed the deal for approximately $30 million — $10 million in stock, $12 million in seller notes, and $8 million in cash. Ayr said it believes it is paying approximately 5x Herbal Remedies’ 2021 EBITDA. The acquisition adds approximately 50 employees to Ayr’s total headcount.
“By the end of this year, AYR will have a presence in Arizona, Florida, Illinois, Massachusetts, Nevada, New Jersey, Pennsylvania, and Ohio. Each represents a high growth market with favorable dynamics for operators,” Viridian Capital Advisors analyst Jonathan deCourcey said in a report. “We continue to expect AYR to quickly develop a formidable business in each new state while building upon its leadership position in Massachusetts and Nevada.”
“The team at Herbal Remedies has done a tremendous job in Quincy, building a fantastic business and a strong reputation for excellent customer service and merchandising – exactly what we at Ayr Wellness look for in a partner when entering a new market. We look forward to working with the Herbal team as we continue to build our presence in the Illinois market,” said Jonathan Sandelman, Chairman and Chief Executive Officer of Ayr Wellness.
Viridian Capital Advisors analyst Jonathan deCourcey said in a report, “Illinois remains one of the top growth states in US cannabis and a market that remains very much in play for a well-run operator (or operators), like AYR, to disrupt and establish a long-term sustainable leadership position.”
The deal is expected to close in the fourth quarter of 2021.