Cannabis giant Canopy Growth has bought UK beauty brand This Works for £43m as it looks to roll out CBD-infused skincare and sleep products.
Canopy Growth, which is the world’s largest cannabis company by market capitalisation, said it has finalised a sky-high cash transaction to buy the London-headquartered skincare firm.
The deal will allow the trailblazing Canadian company to develop a budding new range of products infused with CBD – a chemical compound derived from cannabis – in the beauty, wellness and sleep solution sectors.
“Since 2004, This Works has been committed to creating highly effective, natural skin solutions which are rooted in science and proven to work,” said This Works chief executive Dr Anna Persaud.
“We are excited about this new chapter in our company's history and the opportunity to join Canopy Growth, the world's leading diversified cannabis and hemp company.”
The takeover is Canopy Growth’s second move into the UK this year, after the firm unveiled a joint venture with Oxford-based research company Beckley Canopy Therapeutics.
This Works is known for its pillow sprays, which have racked up 4.2m sales since the firm’s first product launch in 2011.
“We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity,” said Bruce Linton, chairman and chief executive of Canopy Growth.
“As soon as we met with Dr Persaud and her team, we knew they were the right partner to embark with on this journey.”
It comes amid a boom in the medical cannabis market, which is expected to be as worth as much as €123bn (£108bn) by 2028, according to lobby group Prohibition Partners.