The story of Colorado-based cannabis company Medicine Man embodies how a company has grown from the ground up. Starting as a family-owned and operated business in 2009, it became a successful vertically-integrated cannabis operation in Denver. Now, one of the leaders in the national cannabis market has acquired the company for over $40M.
Columbia Care is expanding itself as one the largest cannabis enterprises in America for cultivating, manufacturing, and distributing with the $42M acquisition of Medicine Man, Cannabis Business Times reports. The partnership with Columbia Care allows Medicine Man to continue their operations as a premium cannabis brand that sells everything from pre-rolls to disposable vapes with the backing of nationwide resources. For Columbia Care, the acquisition of Medicine Man expands its stake in Colorado alongside one of the most recognized cannabis businesses in the state.
The $42M acquisition is broken down into $8.4M in cash and $33.6M in stock, though there’s a chance Medicine Man could earn more based on their 2021 performance. Columbia Care CEO Nichola Vita recognized that Colorado’s success in the cannabis industry is just the tip of the iceberg for the growth of the recreational market. Vita explained that Columbia Care’s leadership in the cannabis industry is even more decisive with a recognized and trusted operator such as Medicine Man under the Columbia Care umbrella.
“The acquisition of Medicine Man enhances our position as the leader in the state by combining with a recognized operator that has been a consistent outperformer in the Colorado market since its founding,” Vita said in a statement.
Columbia Care will claim more territory across Colorado, including cities like Denver, Thornton, and Aurora, acquiring Medicine Man, adding four more dispensaries and a cultivation facility to their statewide operations. Twenty-six dispensaries and six cultivation and manufacturing facilities are under Colombia Care’s name in Colorado. Beyond the infrastructure itself, Medicine Man will also be providing Columbia Care with an excellent team of highly experienced executives and employees, many of whom have been considered pioneers for Colorado’s legal cannabis industry in the past decade.
Medicine Man’s co-founder and president Andy Williams explained the similarities in their shared values with Columbia Care. “We recognize the need to partner with others in order to continue to compete within, and help to responsibly transform the industry as it grows,” said Williams. “Columbia Care is made up of people with family business values and has the horsepower to lead the cannabis industry into the future.”
Columbia Care’s business operations expanded across 18 U.S. jurisdictions and the European Union to include 122 facilities. Thirty centers for cultivation and manufacturing and 92 dispensaries are under Columbia Care’s umbrella. Medicine Man now joins a slew of companies that Columbia Care has acquired, including Seed & Strain, Triple Seven, Classix, and Platinum Label CBD.