Vireo Growth Acquires Eaze, Expands into California and Florida

MINNEAPOLIS – Vireo Growth Inc. announced a definitive agreement to acquire Eaze Inc. in a stock-based transaction valued at $47 million upfront, marking the company’s first push into the competitive California and Florida markets.

The deal, which includes potential earn-outs reaching $53 million based on performance targets, positions Vireo to add dozens of retail outlets and an established delivery network to its holdings, with completion targeted for H1 2026.

Under the terms, Eaze will merge into a wholly owned subsidiary of Vireo, bringing operations across three states to the table. In California, Eaze runs four combined retail and delivery sites alongside eight delivery-focused locations that serve key urban centers from San Francisco to San Diego. Florida contributes 39 dispensaries, ranking Eaze sixth among retailers there, plus 64,000 square feet of cultivation space primed for growth. The acquisition also bolsters Vireo’s Colorado footprint, where Eaze maintains a delivery platform handling more than 12 million orders to date.

Vireo Chief Executive John Mazarakis described the move as a calculated step to build scale in high-volume states. “This brings us into California and Florida, two essential markets for any national player,” he said in a statement. The combined entity would operate 166 dispensaries across 10 states and roughly 800,000 square feet of cultivation and production facilities, up sharply from Vireo’s current eight-state base.

Analysts point to the transaction as part of a broader consolidation wave in the Cannabis sector, where operators seek efficiencies amid flat revenues and regulatory bottlenecks. California, the largest U.S. Cannabis market at over $5 billion in annual sales, has seen delivery volumes dip 11% due to oversupply, price compression, and illicit market competition. Florida, meanwhile, generated more than $2 billion in medical sales last year but faces uncertainty as lawmakers debate recreational legalization for a 2026 ballot.

Vireo’s all-stock structure minimizes cash burn, yet it dilutes existing shareholders by about 20% at current valuations, raising questions on integration costs in a sector where mergers often yield mixed results – with top operators slashing capital expenditures to combat inflation-driven operational hikes and Section 280E cash drains amid protracted supply chain alignments.

This follows Vireo’s recent spree, including the acquisition of Schwazze’s senior secured convertible notes for $62 million in October and an $111 million credit bid for its assets in November, and an asset purchase from PharmaCann adding 17 Colorado stores.

As the dust settles on dealmaking in 2025, this acquisition reveals consolidation as the sector’s steady hand, forcing operators [as they strive to survive] to balance aggressive expansion against the grind of uneven markets and persistent federal gridlock.