Columbia Care announced last week that it would enter the Colorado cannabis market with the $140-million acquisition of The Green Solution (TGS), a deal that merges two organically grown cannabis companies and two complementary product lines.
Founded in 2010, TGS was one of the first cannabis companies in Colorado to transition to the adult-use market. It currently operates 21 dispensaries across Colorado, with two additional stores slated to open in Q4 of 2019. The company also operates one of the country’s largest automated manufacturing facilities, which currently produces over 225,000 units of branded products per month, as well as three indoor cultivation facilities with more than 250,000 square feet of grow space, a 16,000-square-foot greenhouse and 140 acres of outdoor cultivation space.
“We’ve essentially mastered our supply chain and really focused on efficiencies, principles and … market share, and understanding what that means to a cannabis company,” TGS Co-Founder and Co-President Kyle Speidell tells Cannabis Business Times. “With that, we’ve really tried to find a catalyst to the next step, which is doing the same in other areas of the country. Over the course of the last two years, we’ve really focused on finding a suitor that we felt was comparable in the sense of matching our same ideas, but [that] had a broader platform that [would allow us to] build a very deep company into more of a broader company that had a lot more markets. Columbia Care … was a perfect match for our operational depth to be added to their 15 markets.”
Upon closing, Columbia Care, a vertically integrated multistate operator, will have 93 total facilities across 15 U.S. states, including 74 dispensaries and 19 cultivation and manufacturing locations. The company also has a presence in the European Union.
Colorado Gov. Jared Polis signed House Bill 19-1090 into law this past summer, which allowed out-of-state investment and ownership opportunities in the state’s cannabis market.
TGS has long been an advocate of H.B. 19-1090 and focused on lobbying and legislative initiatives to get the bill passed. Upon the bill’s passage, the TGS team toured more than a dozen multistate operators’ facilities before landing on Columbia Care as a buyer, Speidell says.
The Columbia Care team also went to great lengths to find the right Colorado partner.
“Ultimately, Colorado being a maturing market, we wanted to make