Canopy Growth Corporation (TSX:WEED), one of the Canadian marijuana stocks, said recently it is acquiring skincare company This Works
SmallCapPower | May 28, 2019: Canopy Growth Corporation (TSX:WEED) (NYSE:CGC), one of the Canadian cannabis stocks, Wednesday announced that it is acquiring This Works, a skincare and well-being company for C$73.8 million (£43 million) in an all-cash deal. The acquisition would help the Company launch new CBD-infused products and brands to the global beauty, wellness, and sleep solution space along with strengthening its presence globally.
London-based This Works is a global leader in natural skincare and sleep solutions, having customers across 35 countries. The Company offers high-quality natural skincare and sleep solution products that include deep sleep pillow spray, morning expert hyaluronic serum, and skin deep dry leg oil.
This Works CEO Anna Persaud will remain at the helm of the business once the transaction is completed.
The acquisition is part of Canopy Growth Corp’s hemp and CBD strategy as the Company continues to build upon its vertically-integrated production and marketing platform. Canopy is currently working on the development of thousands of acres of hemp production across several continents, huge capital investments into hemp-derived CBD production and processing, expansion across the European Union and other regions, and launching new CBD-infused products & brands to the global beauty, wellness and sleep solution space.
Canopy Growth Corporation Chairman & Co-CEO Bruce Linton said, “We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity. As soon as we met with Dr. Persaud and her team, we knew they were the right partner to embark with on this journey.”
Additionally, in January 2019, Canopy Growth announced Spectrum Biomedical UK, a joint venture between Canopy Growth Corporation and Oxford-based research company Beckley Canopy Therapeutics to address the need for high-quality cannabis-based medicinal products in the UK.
Canopy Growth is one of the leading diversified cannabis and hemp companies, offering a variety of cannabis in different forms, such as dried, oil and Softgel capsule. The Company through its subsidiary, Storz & Bickel GMbH & Co. KG, also offers medically-approved vaporizers.
Following the announcement, Canopy Growth stock added more than 2% to close at C$61.82 on May 22, 2019, and currently trades at a market capitalization of C$21 billion with a price-to-book multiple of 2.9x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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