CHICAGO (WLS) -- Chicago-based Cresco Labs is announcing plans to buy a rival and become the largest cannabis company in the country.
The purchase of the rival, Columbia Care, is worth $2 billion.
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A spokesman said Cresco is already at the Illinois limit for the number of allowed dispensaries and cultivation sites, but the company also operates in 10 other states.
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The deal will expand Cresco's footprint in those states and extend its reach into seven more states and Washington, D.C., according to the Chicago Sun-Times.
"This acquisition brings together two of the leading operators in the industry, pairing a leading footprint with proven operational, brand and competitive excellence," Charles Bachtell, CEO of Cresco Labs, said in a statement. "The combination is highly complementary and provides unmatched scale, depth, diversification and long-term growth."
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The acquisition, which is expected to close by December, will create the largest cannabis company by revenue and the number one wholesaler of branded cannabis products, Cresco said.
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Columbia is headquartered in Manhattan.
The Chicago Sun-Times contributed to this report.