Canopy Growth today announced that the company has completed the divestiture of its This Works skincare and wellness brand to Inspirit Capital, a London-based investment firm.
Headquartered in London, England, This Works offers a range of natural skincare and sleep solution products to consumers around the world. In accordance with the completed sale agreement, This Works' leadership, staff, and intellectual property will transfer to Inspirit Capital.
The transaction is valued at up to £9.3 million ($15.9 million CAD or $11.9 million) including cash. Canopy Growth will receive an upfront consideration of £2.7 millino ($4.6 million CAD) in cash and in other consideration, a loan note issued by the buyer, and a contingent earn-out.
"We are resolutely focused on achieving North American cannabis market leadership, and this completed sale represents a further step to enable this through the transformation of Canopy Growth into a simplified, asset-light, cannabis focused business," said David Klein, CEO, Canopy Growth. "In addition to realizing the proceeds from this sale which will further strengthen our financial position, we're pleased to have found a buyer that is committed to the continued development of the This Works brand."
"We're proud of the legacy that This Works has built as part of the Canopy Growth family. Through dedication to the creation of innovative products and formulations we have deepened customer loyalty and expanded our global footprint. As we take this next step, we look forward to working with the leadership of Inspirit Capital to further the brand's growth and long-term success," said Dr. Anna Persaud, CEO, This Works.
"We are excited to invest in This Works and support Anna and the team pursue their ambition for the business. They are well positioned to capitalise on the ongoing growth in consumer interest in sleep and wellness, given the strong brand equity and their track record of product innovation. This deal also further underlines Inspirit's status as a trusted partner for delivering divestments from corporate vendors," said Will Stamp, Partner at Inspirit Capital.