Canopy Growth Buys “This Works” In An All-Cash Deal

  • May 24, 2019 BST
  • Team Kalkine
Canopy Growth Buys “This Works” In An All-Cash Deal

The world's largest cannabis company Canopy Growth, a Canada-based company which sells both recreational and medicinal cannabis products, has bought British skincare brand This Works for £43m, in the company's latest move to grow its footprint in Europe. This Works company is owned by private equity group Tengram Capital Partners and was founded by former Vogue journalist Kathy Phillips. The cannabis company acquired “This Works” in an all-cash deal.

This Works doesn't currently make CBD-infused products and is best known for a sleep-aiding pillow spray. The deal would allow the Smiths Falls, Ontario-based cannabis producer to add a new range of products infused with the cannabis ingredient cannabidiol (CBD) to help users to improve their skin and sleep. CBD is the non-psychoactive ingredient in marijuana which can be sold legally in the United Kingdom when it is derived from hemp. The probable launch in new products will be in addition to the producer's existing portfolio of cannabis oil, hemp and medicinal offerings.

“This Works” Chief Operating Officer Dr Anna Persaud will continue to head the business operations after the acquisition, with Canopy Growth supporting the company's current operations. This Works will be an essential part of Canopy Growth's entry into the natural wellness industry and further bolster the company's strategy of focusing on global expansion and product development that involves developing thousands of acres of hemp production across the world. The company's strategy also includes expanding across the European Union and other regions and making large-scale investments into the production and processing of hemp-derived CBD. The company plans to introduce CBD-infused products and brands to global health and beauty space, and the acquisition perfectly fits into their strategy.

Dr Persaud said that This Works would benefit from the expertise and research of Canopy Growth, and the company is passionate about the opportunity CBD offers beauty consumers. Bruce Linton, Canopy chairman and co-chief executive, said that the company had been looking for the right entry point into the opportunity CBD presents to disrupt the cosmetic and sleep solution industries.

Since the relaxation of the laws governing both recreational and medicinal use in the US and Canada, the cannabis industry has undergone an explosion of growth in both countries. According to London-based analyst, the European cannabis market is poised to be worth €123bn (£106bn) by 2028, offering tremendous opportunities to diversified firms like Canopy Growth.

Canopy, which was founded only six years ago but has grown to become a large company with a market value of $16bn, already has a joint venture with Oxford-based research company Beckley Canopy Therapeutics. The joint venture, called Spectrum Biomedical, is focused on high-quality cannabis-based medicinal products. It has also signed attractive collaboration with celebrities such as rapper Snoop Dogg, who endorses its recreational range and chef Martha Stewart, who promotes its medicinal products.

This Works, which sells its products across Europe, the US and China, was founded in 2003 and focuses on replacing sulphates and other chemicals commonly found in skincare products with high-quality skin and wellbeing products. It has products formulated specifically to work in synchronisation with the body clock to ensure excellent skin performance the whole day.

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