Cresco Labs to become largest cannabis company in US with purchase of rival

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.

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.

Columbia is headquartered in Manhattan.

The Chicago Sun-Times contributed to this report.