Looking towards the wellness industry for new expansion opportunities, Canadian licensed cannabis producer Canopy Growth Corporation (TSX: WEED; NYSE: CGC) just closed the acquisition of a UK health and beauty company.
This morning Canopy Growth announced that London-based skincare and natural sleep organization This Works was purchased in an all cash deal for £43 million (approximately C$73.8 million).
Under the Canopy Growth banner, This Works will expand their product lines with CBD-infused options. The company currently offers sleep pillow sprays, anti-wrinkle night cream, bath gels, and aromatherapy candles.
Dr. Anna Persaud, Chief Executive Officer of This Works, had this to say about the completed acquisition:
Under the terms of the deal, Dr. Persaud will remain in the CEO position and oversee the company’s shift towards CBD-focused products.
Snapping up This Works is just the latest in a series of moves from Canopy Growth towards establishing a foothold in UK operations. At the beginning of the year, Canopy additionally teamed up with an Oxford research company to form the joint venture Spectrum Biomedical, which is now providing cannabis to UK medical patients.
On the European side of operations, Canopy has been on a buying spree lately, picking up German pharmaceutical entity C3 Cannabinoid Compound Company as well as Spanish licensed producer Cafina.
The most attention-grabbing acquisition deal from Canopy Growth has unquestionably been a planned bid to acquire U.S. cannabis company Acreage Holdings, Inc. (CSE: ACGR.U; OTC: ACRGF; FSE: 0ZV). That deal going through hinges entirely on marijuana usage becoming legal in the U.S. at the federal level in the coming years.
Back on the Canadian side of things, current Chief Financial Officer Tim Saunders is now transitioning out of that role, although he will remain an advisor to the board for acquisitions and financing. The company has now tapped Mike Smith — formerly of Constellation Brands and PepsiCo — to serve as acting CFO. Smith will begin his tenure beginning June 1 after receiving security clearance from Health Canada.