Cannabis operator Curaleaf Holdings has announced it will acquire GR Companies ("Grassroots"), the largest private vertically integrated multi-state operator, in a cash and stock deal valued at around $875 million.

The deal will make Curaleaf the world's largest cannabis company by revenue, and the largest in the U.S. Grassroots has a portfolio of 61 dispensary licenses, with 20 currently operating, and 17 cultivation and processing licenses. The transaction will expand Curaleaf's presence from 12 to 19 states, and the combined company will have 131 dispensary licenses, 68 operational locations, 20 cultivation sites and 26 processing facilities.

"With the acquisition of Grassroots and the pending acquisition of Select, Curaleaf is the world's largest cannabis company by both revenue and operating presence," Joseph Lusardi, CEO of Curaleaf, said in a press release. "With a combined 68 open dispensaries, this transaction significantly accelerates our expansion strategy and strengthens our reach across the medical and adult-use markets. In addition, it enhances the depth of our retail and wholesale platform across the country. By leveraging our scale, as well as our market-leading capabilities and expertise, we will continue to deliver value for our shareholders."

In addition, Curaleaf will add new markets in Arkansas, Michigan, North Dakota, Oklahoma and Vermont, and will build on its existing businesses in Connecticut, Maryland, Nevada and Ohio. Once the deal closes, Curaleaf will have access to a total population of approximately 177 million people.

"Today's announcement is a testament to the hard work of the many employees that helped make Grassroots the leading cannabis company in the Midwest,” said Mitch Kahn, co-founder and CEO of Grassroots. “This acquisition will enable us to give our patients and retail partners greater access to products that adhere to the highest standards of quality and reliability, and our employees the opportunity to be part of a best-in-class operator."

The transaction is expected to close early next year.