Curaleaf set to acquire Denver-based company

A Denver-based edibles manufacturer is being scooped up by a multi-state marijuana company in one of the year’s first local business acquisitions.

Cannabis giant Curaleaf is set to acquire BlueKudu, which is known for its infused chocolates and gummies, according to an announcement Monday. Curaleaf, based in Wakefield, Mass., currently operates dispensaries, cultivations and processing plants in 14 states; this move marks its first foray into the Colorado market.

Terms of the deal were not disclosed. However, as part of the acquisition, Curaleaf will use BlueKudu’s 8,400square-foot kitchen and processing facility in Denver to expand its line of Select cannabis edibles, which include gummies.

“Colorado is the second largest cannabis market in the U.S., with sales surpassing $1.7 billion in 2019,” Joe Lusardi, CEO of Curaleaf, said in a statement. “BlueKudu’s established production and distribution capabilities will allow Curaleaf to seamlessly enter the market and expand the Select brand presence in the state of Colorado.”

BlueKudu was founded in 2011 with the hope of creating “a consistent, high-quality product,” owner Andrew Schrot told The Denver Post in 2014. Its line of infused products includes chocolate bars, bonbons and cookies with delta 9-tetrahydrocannabinol (THC), and gummies with both THC and cannabidiol (CBD).

Those edibles will remain on the market following the acquisition, and the company’s leadership will stay on for a period of time to help with the transition, according to a Curaleaf spokeswoman.

Schrot was not available for comment.

Industry experts expect mergers and acquisitions to become increasingly common in the cannabis space, especially following a change in Colorado law last year that allows for publicly traded companies to invest in the local industry.