Cresco Labs has completed its $50 million acquisition of nine operational medical marijuana dispensaries in Pennsylvania, significantly expanding the company’s retail presence in one of the nation’s largest medical marijuana markets.

The company announced September 2 that it has acquired 100% of the outstanding equity interests in PharmaCann Penn, LLC. The transaction includes nine operating medical marijuana dispensaries and was completed for $50 million through a combination of cash and a seller note.

Cresco had previously disclosed the planned acquisition and began supporting operations at the nine dispensaries under a management services agreement in April. The closing gives Cresco full ownership of the locations.

According to Cresco, Pennsylvania’s medical marijuana market generated more than $1.1 billion in sales last year, making it the second-largest medical marijuana market in the United States.

Following the acquisition, Cresco says it is now the largest medical marijuana retailer in Pennsylvania. The company also describes itself as the state’s largest marijuana wholesaler, giving it a substantial presence across both retail and product distribution.

“This transaction expands our retail footprint in a core market through a highly strategic acquisition while creating additional opportunities to leverage our existing infrastructure,” said Cresco Labs CEO Charlie Bachtell.

Bachtell said combining additional retail locations with Cresco’s existing cultivation and wholesale operations strengthens the company’s position in Pennsylvania.

Cresco said it expects the acquisition to immediately increase revenue, margins and cash flow. The transaction was completed on a cash-free, debt-free basis with an agreed-upon normalized level of working capital.

Cresco operates dispensaries under its Sunnyside brand while selling marijuana products under brands including Cresco, High Supply, FloraCal, Good News, Mindy’s and Remedi.