Cresco Labs Announces Strategic Acquisition of Columbia Care

One of the largest cannabis acquisitions is set to happen by the end of 2022 involving vertically integrated giants Cresco Labs and Columbia Care. On March 23, 2022, Cresco Labs announced its intent to purchase Columbia Care for a remarkable  ~$2 billion in a definitive arranged agreement.

The transaction will create the largest cannabis operator by Pro-forma revenue in cannabis today and increase the companies’ national and global reach. Currently, Cresco Labs only has two patents protecting methods for cannabis oil post-processing. The acquisition will open Cresco Labs to Columbia Care’s patent portfolio which includes eight (8) pending patent assets covering topical, inhaler, and oral compositions as well as a cannabinoid suppository formulation. Under the Cannabist dispensary name, Columbia Care has become a trusted cannabis retailer in 18 U.S jurisdictions and the European Union providing quality products people enjoy. Now, it’s expected Cresco Labs will leverage its developed technology with Colombia Care’s products to offer an even more refined line of quality products to their consumers.

Compared to the Aphria and Tilray merger, both companies are bringing patent assets to the deal that will benefit each other. At the time Aphria merged, it had no patent assets. Since its merger with Tilray, Aphria has applied for at least one patent for cannabis analysis through quantitative detection of cannabinoids which may not have happened if it weren’t for the merger. Patent Forecast expects to see Columbia Care and Cresco Labs expand their portfolios to cover more grounds within the industry either through development or acquisition. A prime candidate for acquisition would be an extractions portfolio like Natural Extraction Systems or Nextleaf Solutions which lead the cannabis extraction space – the most active space within the industry.

Cresco’s announcement comes just in time of the House passing legislation to legalize cannabis nationwide. The likelihood of the Senate passing the bill is low but the industry has its hopes up that the federal government will follow suit of the many states that have already legalized it. Stay up to date with patent and market activity in the cannabis industry using the Cannabis Patent Forecast®.