Verdant Acquires Native Roots Cannabis Chain
Verdant Partners has entered a definitive agreement to acquire the retail operations of Native Roots, which includes 17 cannabis dispensaries in Colorado. Native Roots is one of the state's longest-operating dispensary brands.
The acquisition brings Native Roots' founder, Josh Ginsberg, back into a key role with the company he helped build. Ginsberg, a co-founder and principal at Verdant Partners, originally scaled Native Roots to 23 retail locations and a significant cultivation footprint. Established in 2009 as a medical marijuana provider, Native Roots became a major player in Colorado's recreational market after legalization in 2014. The company grew to be one of the most recognized cannabis brands in the state, with its own cultivation and manufacturing facilities. While the definitive agreement mentions 17 dispensaries, Native Roots has been cited as operating over 20 locations across Colorado, from the Denver Metro area to the mountains and Southern Colorado. The company was one of the largest privately and locally owned dispensary chains in the region. Verdant Partners is an investment and operations platform focused on acquiring and scaling established cannabis retail businesses. Their strategy centers on improving operational efficiency and preparing portfolio companies for long-term growth in a U.S. cannabis market that is navigating complex regulations and limited access to capital. This deal comes as Colorado's cannabis market, a pioneer in the nation, is experiencing a period of maturation and increased competition. Total sales in the state have seen a decline from their peak in 2021, leading to price pressures and market consolidation. Under its new ownership, the focus for the Native Roots retail business will be on "disciplined operations and raising the standard for cannabis retail in Colorado," according to a statement from Verdant's CEO. The transaction is currently pending regulatory approval.
