Cronos Group Inc. is buying the parent company of Lord Jones for $300 million.
Lord Jones, founded by retail veteran Cindy Capobianco and her husband, Robert Rosenheck, makes and sells hemp-derived cannabidiol-infused skin-care and edible products. The duo founded the business in California and originally sold products with THC, too, but eventually transitioned into a CBD-only business.
Both Capobianco and Rosenheck will stay on with the brand, according to a statement from Cronos. The deal is expected to close in the third quarter.
“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,” said Mike Gorenstein, Cronos chairman, president and chief executive officer, in a statement.
The deal, which is made up of cash and stock, is just the latest in the CBD acquisition space.
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Earlier this year, Canopy Growth acquired This Works, a wellness brand that makes things like Deep Sleep Pillow Spray and Skin Deep Dry Leg Oil, with plans to infuse CBD products into the line. Canopy Growth also made an investment in High Beauty, a skin-care brand that uses hemp seed oil (which doesn’t contain CBD).
CBD has been one of the hottest ingredients in beauty, with advocates touting the ingredient’s inflammation benefits.
Lord Jones was one of the first brands to capitalize on interest in that space, with celebrities publicly vouching for its High CBD Formula Body Lotion, $60, for things like foot pain. The brand has also had a differentiated marketing strategy, hosting events, including sound baths with CBD edibles and workshops with Equinox. Earlier this year, Lord Jones starting selling products at Soul Cycle. The brand also has distribution through The Standard hotel chain.
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