Fast-growing Colorado-based retail company Schwazze announced its acquisition of two more marijuana shops in its home state, bringing the firm’s store count to 22. Per the press release on Tuesday, November 16, Schwazze paid $29 million for MCG, which does business as Emerald Fields and has shops in Glendale, a Denver suburb, and Manitou Springs. The deal is supposed to close within 75 days and will be 40% paid in Schwazze stock while the remaining 60% will be paid in cash.
This week, the acquisition is the second one for the company, which has been on a purchasing spree most of the past year. In the press release, Schwazze’s CEO, Justin Dye, said, “Our team is delighted to add the Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and are eager to welcome the team to Schwazze.” He continued, “Manitou Springs and Glendale are attractive locations and are valuable assets to our overall acquisitions plans as we continue to build out Colorado.”
Dye concluded, “Our team is excited to add another store brand to our house of brands.” That house of brands, by the way, is made up of at least six other brands, including dispensaries, which provide products and services ranging from smoking accessories to CO2 extraction to fresh, potent bud. Schwazze acquiring all these different dispensaries is a great business move for a company preparing for federal legalization within the United States. This acquisition was huge for the firm, although they were already ascending quickly.
Their business has grown immensely, with the procurement of these other dispensaries helping expand their company significantly. The company’s business moves, such as this acquisition, show the lucrative potential in the marijuana industry.