Lord Jones CBD Beauty products.
Source: Lord Jones
Cronos acquires access to the US CBD market by acquiring Redwood Holding Group, the company behind the popular CBD beauty brand Lord Jones, for $ 300 million, the pot company announced Friday.
Redwood operates primarily through the Lord Jones brand, which sells CBD-infused creams, gums, bath salts and oils. Lord Jones was the first CBD brand to land a spot in beauty retailer Sephora.
The agreement gives Cronos a foothold in the fast-growing US CBD market, where consumers are fighting for beauty products, foods and oils from the cannabis compound. Congress legalized hemp-derived CBD late last year, which made retailers more comfortable stocking its products. Shares of Cronos rose 5% in premarket trading Friday.
Husband and wife, Robert Rosenheck and Cindy Capobianco, started Lord Jones in 201
"Our goal is to preserve the integrity of everything Rob and Cindy have created, while learning from them and leveraging Cronos Group's resources to leverage the significant demand for skin care and other hemp-derived consumer products," said Cronos CEO Mike Gorenstein in a statement.
$ 300 million includes Redwood's estimated cash and debt. Of the $ 300 million, $ 225 million will be paid in cash, with the remainder being paid in newly issued Cronos shares.
Cronos took a $ 1.8 billion investment from tobacco giant Altria late last year. The agreement gave Altria a 45% stake in the company.