Dispensary 33, one of the last major independent weed shop operators in Illinois, is being acquired by a publicly traded company.
Miami-based Ayr Wellness is buying D33, which has marijuana shops in Andersonville and Fulton Market. Ayr is paying $55 million for the two shops in a deal that includes $40 million in stock, $12 million cash and $3 million in debt.
D33’s shops are the latest Illinois dispensaries to be acquired since Illinois legalized recreational cannabis use nearly two years ago. Midway Dispensary was bought a year ago by New York-based Ascend Wellness, which also bought two MOCA-Modern Cannabis dispensaries.
Ayr has been bulking up its portfolio in Illinois. It said it would buy two dispensaries in Quincy in July for $30 million.
“In any market where we operate, our goal is to develop scale and meaningful presence,” Ayr CEO Jonathan Sandelman, said in a statement. “We will continue to seek opportunities to expand in Illinois.”
The Illinois cannabis market is dominated by homegrown giants — such as Cresco Labs, Green Thumb Industries, Verano Holdings and PharmaCann — each of which have the maximum of 10 retail licenses allowed by state law.
Ayr and Ascend are among the out-of-state companies that have been bulking up in Illinois. Deal-making is expected to continue as Illinois issues new dispensary licenses. For now, those 185 new licenses are on hold, pending the resolution of about a dozen lawsuits challenging the lottery process used to distribute the new licenses.