Cronos Group has announced that it is set to purchase four operating subsidiaries from Redwood Holding Group for US$300 million.
Redwood manufactures, markets and distributes CBD beauty products in the US under its Lord Jones brand. Under the terms of the deal, Redwood’s Co-founders Robert Rosenheck and Cindy Capobianco will join Cronos Group to lead the development of the Redwood platform.
“Rob and Cindy have built a differentiated, best-in-class platform with hemp-based CBD formulations that stand for quality and consistency. Our goal is to preserve the integrity of all Rob and Cindy have created, while also learning from them and leveraging Cronos Group’s resources to capitalize on the significant demand for skincare and other consumer products derived from hemp. Leading the industry forward responsibly and being a part of the conversation with industry stakeholders remains a top priority for Cronos Group in this evolving area,” said Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer.
“The inspiration for our company was simple, we wanted to create a brand we wished we could buy as adult consumers,” said Mr. Rosenheck. “We chose Cronos Group because they share our vision and values and will help us continue our mission. We are incredibly proud of our team and grateful to our customers who are responsible for our success. Cindy and I look forward to working with Cronos Group to further extend the love and enthusiasm for our products.”
The transaction is expected to close in the third quarter of 2019.