Curaleaf Holdings (OTC:CURLF) announced Friday it has finalized the acquisition of BlueKudu, a Colorado-based maker of high-end edible cannabis products. As part of the deal -- the terms and price of which were not disclosed -- Curaleaf will also acquire BlueKudu's 8,400-square-foot processing facility located in the state's most populous city, Denver.
BlueKudu has been concocting its tasty and heady treats since 2011, which is an eternity by the standards of the young cannabis industry. It doesn't share its financial results; regardless it successfully operates in a long-established market -- Colorado was one of the first states to legalize recreational marijuana -- that recently set a new annual sales record of almost $1.75 billion in 2019.
The processing facility also gives Illinois-based Curaleaf a bigger footprint in the West, not to mention a locale from which to supply the vibrant local market. The company specifically mentioned it will distribute its Select cannabis brand in the state.
The integration of BlueKudu into Curaleaf's operations should be relatively quick and painless. The acquirer said it will fold BlueKudu's results into its own starting in the third quarter.
Without knowing the financial particulars of the deal, it's hard to judge whether it was a good buy for Curaleaf. What we can say is that it's a sensible move on a solid, dependable asset located in a fine place for the company to expand its footprint.