Talk about a massive play among industry giants. A proposed acquisition will launch Sean “Diddy” Combs into the cannabis sphere with his typical ambitious aplomb. Cresco Labs and Columbia Care today announced the signing of definitive agreements to divest certain New York, Illinois, and Massachusetts assets to a company owned by Combs.
Given the unique challenges of the cannabis industry, will this be a case of “Mo Money Mo Problems“? Doubtful. Although the proposed deal marks a first for Combs, who has never invested in cannabis, he’s previously shown mastery of diversifying into new industries, including fashion, fragrance, media channels, wine, and booze.
The divestiture is required for Cresco to close its acquisition of Columbia Care. The transaction is expected to close concurrently. Total consideration for the transaction is an amount up to $185,000,000. If approved by regulators, the purchase could create the nation’s largest Black-owned cannabis company. These vertically integrated New York, Illinois, and Massachusetts assets provide Combs the ability to grow and manufacture cannabis products, distribute products to licensed dispensaries in major metropolitan areas, and operate retail stores in all three states.
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Combs, Chairman and CEO Combs Enterprises. “Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”