Sean ‘Diddy’ Combs has bought cannabis operations worth a whopping $185 million from Cresco Labs, a vertically integrated multistate operator and the No. 1 U.S. wholesaler of branded cannabis, and Columbia Care.
According to the press release and a report by WSJ, the agreement is to sell their New York, Illinois, and Massachusetts assets to Diddy. The sale is required for Cresco to close its previously announced acquisition of Columbia Care The total consideration for the Transaction is an amount up to US$185,000,000.
With the transaction, Diddy will create the largest black owned cannabis company in the world. It will also create the country’s first minority-owned and operated, vertically integrated multi-state operator. It will mean Diddy’s operation will have the ability to grow and manufacture cannabis products as well as operate retail dispensaries.
“Today’s announcement is bigger than the Transaction – and it couldn’t come at a time of greater significance and momentum. We’ve seen executive power exercised to address matters of cannabis injustice, we’re seeing bi-partisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility – this announcement adds to that momentum,” said Charles Bachtell, Cresco Labs’ CEO. “For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future. For an industry in need of greater diversity of leadership and perspective, the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous…and incredibly exciting. We’re thrilled to welcome Sean and his team to the industry.”
“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 Sean “Diddy” 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.”