The news comes on the heels of the company’s local partner Sira Naturals’ approval to sell adult-use cannabis products at its Somerville and Watertown stores in Greater Boston.
The New York-based multi-state operator confirmed Monday it has signed a definitive purchase agreement to acquire Tahoe, a cannabis flower cultivator and producer as well as NV Green, Inc., which produces high-quality concentrates.
Under the agreement, Ayr will obtain 100% membership interest of Tahoe Hydro for $17 million in total consideration, consisting of $5 million in cash $3.5 million in debt and around $8.5 million in stock.
Based on current estimates, the company is paying around 4.5x Tahoe Hydro/NV Green’s combined 2021 adjusted EBITDA.
Why It Matters
The transaction would advance Ayr’s current footprint in Nevada with two cultivation licenses, one production license and one distribution license. It would also add notable growing capacity to the company’s operations across Nevada and bolster its access to premium cannabis flower.
Tahoe Hydro operates 33,000 sq. feet of total growing and production space in its facilities in Carson City and in Sparks, Nevada. It cultivates flower and/or manufactures concentrates for popular brands like Tahoe Hydro, LIT and the famous cannabis brand Cookies.
What’s more, the purchase will bring cultivation talent to Ayr’s growing team of 75 employees, which the company will deploy both in Nevada and nationally.
“The Tahoe Hydro acquisition perfectly encapsulates Ayr’s strategy,” Jonathan Sandelman, CEO of Ayr, said. “We seek to be the largest scale cultivator of high-quality cannabis in every market where we operate. Tahoe Hydro has demonstrated time and time again its ability to produce flower that meets the exacting standards of quality that Ayr sets throughout its organization. We could not be more excited to bring their talented team of