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Curaleaf enters Colorado market with BlueKudu acquisition

Cannabis
02 March 2020 11:02 (EDT)
Curaleaf enters Colorado market with BlueKudu acquisition

Source: The Business Journals

Cannabis operator, Curaleaf Holdings (CSE:CURA), has announced its acquisition of Colorado-based BlueKudu.

Founded in 2011, BlueKudu is one of Colorado’s oldest and most established edible manufacturers.

The company has a reputation for using high-quality ingredients from farms with Rainforest Alliance Fair Trade certification.

Employing a range of culinary experts, BlueKudu utilises a unique extraction process that results in a cleaner and more natural cannabis oil. The company’s range of products also include vegan and gluten free options.

Through the deal, Curaleaf will operate an 8,400 square foot infusion and processing site in Denver.

Curaleaf’s acquisition forms part of a wider strategic initiative to grow its Select brand of products in Colorado.

Select was acquired in early February this year, joining the company’s existing range of Curaleaf retail products.

Joe Lusardi, Curaleaf CEO, is optimistic about the company’s foray into the second-largest cannabis market in the US.

“With over eight years of operating history, BlueKudu has developed a strong brand for customers seeking premium cannabis products in a diverse range of flavors and formulations.

“BlueKudu’s established production and distribution capabilities will allow Curaleaf to seamlessly enter the market and expand the Select brand presence in the state of Colorado,” he said.

The cannabis market in Colorado generated more than C$2.27 billion in sales during 2019.

While the value of the deal has not yet been made public, it is expected to be finalised upon regulatory approval.

BlueKudu’s products are currently available in more than 200 retail outlets throughout Colorado.

Shares in Curaleaf are currently down 6.46 per cent to $6.66, with a market cap of $3.13 billion at 11:00am EST.

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