It was a busy week of dealmaking, as several top cannabis firms announced major deals in notable markets like Chicago, Pennsylvania and New Jersey.
Parallel Acquires 6 Windy City Locations
On Thursday, Florida-headquartered Parallel — which last month announced plans to go public in a $1.8 billion SPAC transaction — said it would acquire six Illinois dispensaries previously affiliated with Grassroots Cannabis in a $100 million deal.
Parallel has agreed pay $60 million in cash and $40 million in stock for the remaining Windy City Cannabis retail locations in Illinois, which are expected to generate $75 million in revenue this year.
Additional earnout agreements could bring the deal to $155 million, according to a news release.
Recall that Curaleaf, the world’s largest cannabis company, last year closed its $830 million acquisition of Grassroots Cannabis, whose co-founders separately owned a total of 16 Illinois dispensary licenses under the Greenhouse and Windy City Cannabis banners.
However, in order to comply with Illinois regulations that limit companies to owning 10 dispensaries, Curaleaf was forced to find a buyer for six of its licenses.
Under the terms of the deal announced Thursday, Parallel will acquire four existing dispensaries and two planned retail locations from a holding company led by Steve Weisman, CEO of Windy City and co-founder of Grassroots.
Parallel’s purchase of the remaining Windy City locations marks a homecoming of sorts for CEO William “Beau” Wrigley, heir to the namesake chewing gum enterprise.
“The acquisition of Windy City enables Parallel’s entry into Illinois, one of the best performing cannabis markets in the U.S. to date,” Wrigley said via the release.
Upon closing, Parallel will become a key player in the $1.4 billion Illinois cannabis market, which is dominated by juggernauts like Curaleaf, Green Thumb Industries, Cresco Labs and Verano Holdings.
“We have been