UPDATE May 1, 2019: A previous version of this article incorrectly indicated that Curaleaf was acquiring the Select CBD assets. While Curaleaf will own the Select brand for use in all markets, with respect to CBD they are focused on their already established, fast growing Curaleaf Hemp brand.

In a bid to expand U.S. operations, Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF) just entered a definitive agreement to acquire a Portland-based wholesale cannabis brand. 

Today Curaleaf revealed the agreement to acquire Cura Partners – owners of the Select brand with THC and CBD products sold across four states by 900 dispensaries – in a transaction valued at just shy of $1 billion. 

The terms of the $948.8 million all-stock deal see Curaleaf acquiring Select’s cannabis product lines, in addition to the brand’s existing processes for manufacturing, distributing, and marketing those recreational products. 

Select has a particularly large presence in California, where cannabis companies on both the Canadian and U.S. sides have been ramping up operations and attempting to break into the adult-use recreational market. 

Curaleaf’s Chief Executive Officer Joseph Lusardi stated the acquisition’s purpose is to increase the company’s vertical integration and lead to increased efficiency in operating and distributing at a larger scale. Lusardi further commented: 

The combination of Curaleaf and Select is a perfect fit. With our industry leading capacity, expansive retail distribution network and Select’s impressive sales and marketing capabilities, we intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range.

That line of oils includes CO2 THC vape cartridges, high THC “dabbable” vials with a variety of terpene profiles, and 1:1 liquid vials with a combination of CBD and THC. 

As with many other companies jumping into the CBD end of the industry following the passage of the 2018 U.S. Farm Bill last year, Select also now offers a line of hemp-based CBD tinctures for pets in flavours like salmon, peanut butter, and bacon. 

After being unanimously approved by the board of directors and independent committees from both Curaleaf and Cura, the acquisition deal will still require Cura shareholder approval later this year to be completed. 

If the deal is completed, Cura’s CEO Cameron Forni will join the Curaleaf banner as President of Select, while Select’s current Chief Marketing Officer Jason White will move to the new role of Curaleaf CMO. 

In other recent company news Curaleaf has opened several additional medical dispensaries in Florida – including one with a drive thru option – and also recently partnered with the Veterans Cannabis Project for an increased access initiative.