The Green Solution (TGS), a marijuana company with grow facilities and a dispensary in Trinidad, is being bought by international marijuana company Columbia Care for $140 million.
The two companies are expecting to close the sale this next year. The $140 million price tag excludes “certain performance based milestone payments,” said Columbia Care via a release announcing the purchase.
Columbia Care described TGS as “Colorado’s largest vertically integrated cannabis operator,” and believes the sale makes them now the leading operator in the “$1.6 billion Colorado cannabis market,” and expands their footprint from Europe to the U.S. to include 74 dispensaries and 19 cultivation/manufacturing facilities (a total of 93 facilities open or under development).
Columbia Care believes the purchase will accelerate the company’s profitability and said the purchase will increase the company’s third quarter “pro forma” revenue for 2019 by $73.3 million.
Founded in 2010, TGS currently operates 21 dispensaries with two additional stores under development that are expected to open in the fourth quarter of 2019. TGS is spearheaded by the Speidell family, who have appeared before Trinidad City Council several times seeking city licenses for their facilities in recent years.
According to Columbia Care, TGS also operates one of the country’s largest capacity, single site, automated manufacturing facilities that currently produces over 225,000 units of highly curated, branded (cannabis) products every month.
TGS’s cultivation footprint encompasses three indoor grows totaling more than 250,000 sq. ft., including a five-level, high-tech vertical grow, as well as 16,000 sq. ft. of greenhouse capacity located on its 140-acre outdoor cultivation complex located in Trinidad’s industrial park.
“Combined, these sites are expected to yield more than 48,000 pounds of the lowest cost, highest quality indoor, outdoor and greenhouse flower in 2019 and nearly 150,000 pounds by 2023,” said Columbia Care. “TGS completed over 1.4 million retail transactions in 2018 and recognized revenue in excess of $73 million on a trailing twelve-month basis ending September 30, 2019. Additionally, The Green Solution has garnered more than 80 awards from cannabis competitions around the world and continues to be one of the most recognized heritage brands in the industry.”
Columbia Care was founded in 2012 and has licenses in 15 jurisdictions in the U.S. and European Union.
Said TGS Co-President Kyle Speidell, “This deal allows us to provide Colorado consumers with Columbia Care’s unique portfolio of pharmaceutical-quality products, and also enables us to quickly expand our TGS brands into 14 new U.S. jurisdictions.”