The deal will combine Cresco’s well-recognized marijuana brands with New York-based Columbia Care’s retail footprint to create the largest U.S. multistate operator by revenue, Cresco Chief Executive Officer Charles Bachtell said in an interview.

Bachtell, who will lead the combined company, said the transaction will expand Cresco’s presence to 17 states, plus the District of Columbia, up from 10 states. It will also give Chicago-based Cresco the top market share in Illinois, Pennsylvania, Colorado and Virginia.

“This is how you turn brands like High Supply, Cresco and FloraCal into Miller High Life, Coca-Cola and Johnnie Walker Blue Label,” Bachtell said.

Cresco’s quest to win name recognition for three of its top marijuana brands will be bolstered by the deal, which will allow the company to sell products to 70% of the current potential market, he added.

Columbia Care investors will receive 0.5579 of a subordinate voting share in Cresco for each of their shares, making the deal worth about $2 billion enterprise value based on Tuesday’s closing price. That’s a premium of about 16% for Columbia Care shareholders, and gives them around 35% of Cresco’s stock.

The deal, referred to as “Project Jet” by Cresco, has been in the works for around three months.

The transaction will give Cresco the largest annual revenue in the cannabis industry, at around $1.4 billion, the companies said. [Read More @ Bloomberg]