Multistate cannabis operator Ayr Wellness signed a letter of intent to acquire three medical marijuana dispensaries in Pennsylvania for $80 million, broadening the New York-based company’s presence in the fast-growing industry. The $80 million acquisition of PA Naturals includes $20 million in stock, $25 million in seller notes, and $35 million in cash, according to a press release. In addition, Ayr will pay an earnout up to $40 million, mostly in stock and notes, in the first quarter of 2022, based on certain Pennsylvania Naturals 2021 financial metrics.
PA Naturals, which operates under the brand of Nature’s Medicines, has dispensaries in the University of Pennsylvania college town of Bloomsburg and in State College, where Penn State University is located, as well as in Selinsgrove. The deal is expecting to close sometime in the fourth quarter. The company said it plans to rebrand the dispensaries under the Ayr Wellness banner. Ayr intends to purchase 100% of the membership interest of PA Natural.
Jonathan Sandelman, Ayr Wellness Founder, Chairman, and CEO, said, “Our goal across our footprint is to develop scale and meaningful presence in each of our markets. Today’s announcement builds on our already strong position in Pennsylvania, where we have built a tremendous foundation since entering the state just a few months ago.” He continues, “Our three Ayr Wellness stores, open an average of less than six months, are run-rating at over $7 million in annualized revenue per dispensary and our cultivation facilities are producing some of the best-reviewed flower in the state.” This business acquisition will shine a great light on the quickly-growing market that is the marijuana industry.