Cresco Labs buys Tryke for $282.5 million…
Cresco Labs (CSE: CL) agreed to acquire Tryke Companies for a total of $282.5 million, with $252.5 million for the operating assets and $30 million for the real estate. The deal is composed of $55 million in cash and $227.5 million in CL shares.
Per the presentation on the acquisition and filings, Tryke had 2018 revenue of $70.4 million and EBITDA of $24.6 million, yielding a surprisingly high 34.9% EBITDA margin.
Using the total acquisition price, this yields multiples of 4.0X 2018 sales and 11.5X 2018 EBITDA.
Tryke generates $31 million, or 44% of its revenue, from a single dispensary on the Las Vegas Strip, directly across the street from Planet 13’s dispensary.