Minneapolis-based Vireo Growth, Inc. will acquire cannabis company Proper Brands in a $397 million deal with four other companies.
Founded in 2020, Proper Brands has 11 dispensaries, all but one are in the St. Louis region, and two manufacturing facilities. The company makes products such as Proper Cannabis, Honeybee edibles, Ratio vaporizers and mints and Goodnight sleep chews.
Under the merger with Vireo, Proper will retain its leadership and identity.
“We’re building a bigger family,” John Pennington, founder and CEO of Proper, said in a statement. “This merger brings together the best local operators who share our values and passion. While this is a new chapter, our commitment to serving Missouri customers, employees and communities remains our top priority.”
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Vireo will also acquire Deep Roots Harvest in Nevada, and WholesomeCo Cannabis in Utah and is working to buy The Flowery in Florida. The transaction also includes cannabis delivery and analytics platform Arches.
The deal is supported by $75 million in equity financing and grows Vireo’s footprint to seven states, nine facilities and 48 dispensaries.
Already, Vireo has 16 retail dispensaries under the Green Good and Vireo Health banners. Vireo brands include Boundary Waters chews and vapes, HiColor edibles, Kings and Queens concentrates and more.
Last quarter, Vireo reported a revenue of $22.4 million, up over 6% from last year’s same quarter, despite seeing decreased operating income.
“With this merger, we will have access to a larger pool of industry experts for best practices and joint resources to continue expanding Proper Brands’ portfolio of products for adult-use consumers and medical cannabis patients across Missouri,” Matt LaBrier, Proper COO and co-founder, said in a statement.
The deal is pending shareholder and regulatory approvals.
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