TerrAscend Doubles Dispensary Footprint in Pennsylvania Through Acquisition of Keystone Canna Remedies – The Delaware County Daily Times
Acquires Three Operating Dispensaries in Northeast Pennsylvania
Purchase price represents a mid-single digit multiple of KCR’s expected 2021 EBITDA
NEW YORK and TORONTO, April 20, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE:TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced it has entered into a definitive agreement to acquire GuadCo, LLC and KCR Holdings LLC (collectively “KCR”) for an implied enterprise value of US$70 million (the “transaction”). Upon close, the transaction will add three retail dispensaries located in Bethlehem, Allentown and Stroudsburg to complement the Company’s existing retail footprint in Southeastern Pennsylvania.
As an operator of three well managed dispensaries in the Northeast region of Pennsylvania, KCR expands TerrAscend’s retail footprint, diversifies the Company’s customer base and enhances margins through deeper vertical integration. The transaction will be immediately accretive upon closing, which is expected to occur in the second quarter, subject to customary regulatory approvals.
“The Pennsylvania medical cannabis market is a key focus for the Company,” said Jason Wild, Executive Chairman of TerrAscend. “This transaction doubles our owned footprint to six dispensaries in the state and provides patients in Pennsylvania’s Northeast region access to TerrAscend’s outstanding products, service, and support. This expanded retail footprint further