Ayr Wellness to buy Tahoe Hydroponics for $ 17 million
Ayr Wellness Inc. (OTC: AYRWF) is acquiring Nevada-based Tahoe Hydroponics Company, LLC for $ 17 million. It is a cash and stock transaction that will consist of $ 5 million in cash, $ 3.5 million in debt, and approximately $ 8.5 million in stocks.
Tahoe Hydro has approximately 33,000 square feet of cultivation and manufacturing space at its Carson City, Nevada and Sparks, Nevada facilities. The company grows flowers and produces concentrates for some of the state’s top-selling brands, including Tahoe Hydro and LIT (Lost in Translation), top sellers and local favorites across the state, according to the BDSA, and is a Nevada flower supplier for the well-known brand Cookies. Ayr said the acquisition will add significant growing capacity to its Nevada operations and provide the company with expanded access to high-quality, premium flowers for its operations across the state.
“The acquisition of Tahoe Hydro perfectly embodies Ayr’s strategy,” said Jonathan Sandelman, CEO of Ayr. “We strive to be the largest grower of high quality cannabis in every market we operate in. Tahoe Hydro has consistently demonstrated its ability to produce flowers that meet the high quality standards that Ayr sets throughout its business. We couldn’t be more excited to bring their talented team of growers into our organization and add their impressive flower to our wholesale and retail offerings in Nevada. “
Ayr said in a statement that the acquisition will add significant grower talent to its 75-strong grower team that the company seeks to deploy across Nevada and nationally. Based on current projections, Ayr estimates it will pay roughly 4.5 times Tahoe Hydro / NV Green’s combined adjusted EBITDA for 2021. The acquisition of Tahoe Hydro and NV Green adds two cultivation licenses, a production license and a distribution license to Ayr’s presence in Nevada.
Last week, Ayr Wellness announced that the Massachusetts Cannabis Control Commission has granted its local partner Sira Naturals provisional licenses to sell adult cannabis at its Somerville and Watertown locations in the greater Boston area, as well as a provisional license to grow and produce its M3. granted cultivation facility in Milford, Massachusetts. Sandelman said, “The greater Boston area is dramatically underserved in adult cannabis access. Obtaining our temporary adult licenses in Somerville and Watertown is a big step in that direction. The expansion of our new cultivation facility in Milford is also progressing according to plan. As we often say, our goal is to be the largest high quality cannabis grower in every market we serve. The new facility will help us achieve this goal and further expand our leading wholesale presence in the state. “