Cronos Group, a Canadian vertically integrated marijuana business with international production and distribution, announced Friday it will acquire 4 operating subsidiaries from Redwood Holding Group for $300 million.
Primarily based in Los Angeles, Redwood produces, markets and distributes hemp-derived CBD merchandise, like skin care, bath products and gummies, all through the United States below the Lord Jones brand.
The deal is anticipated to close in the third quarter. At that time, Redwood co-founders Robert Rosenheck and Cindy Capobianco will join Ontario-primarily based Cronos Group and continue to lead the Redwood brands with their very same group and operating areas.
“Our objective is to preserve the integrity of all Rob and Cindy have developed even though also understanding from them and leveraging Cronos Group’s sources to capitalize on the substantial demand for skin care and other customer merchandise derived from hemp,” Cronos Group President and CEO Mike Gorenstein stated in a statement.
In June, Gorenstein hinted at the chance, saying the business had its sights set on the nascent U.S. hemp sector, with plans to launch CBD merchandise by the finish of the year.
A landmark $1.eight billion investment by North American tobacco giant Altria Group, along with Cronos’ ties to cannabis private equity firm Gotham Green Partners, could possibly be Cronos’ pathway to securing a foothold in the United States, Gorenstein told on the web news network Cheddar.
“Through the Altria partnership, we do have access to more than 200,000 retail retailers across the U.S. .… (and) access to networks of farmers that can convert from developing tobacco to developing hemp,” Gorenstein stated in June.
Cronos Group trades on the Toronto Stock Exchange and the Nasdaq below the ticker symbol CRON.
Laura Drotleff can be reached at [email protected]
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