Canopy Growth Buys British Beauty Brand

[dropcap class=”kp-dropcap”]T[/dropcap]he world’s largest cannabis producer has agreed to buy British beauty company, This Works, for £43 million ($54 million USD). The deal will allow Canopy Growth to develop skincare and sleep products infused with cannabidiol (CBD).

CBD is an active ingredient in cannabis that doesn’t produce the effects of a high and can be sold in the U.K. when derived from hemp. The CBD market in the United Kingdom is growing rapidly with CBD products available at various grocery stores and department stores. This Works is best known for its face creams and a pillow spray that helps aid sleep.

“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, Canopy Growth chairman and co-chief executive.

In addition to increasing product range, Canopy Growth’s deal with This Works will help enhance the company’s footprint in the U.K., where it already has a joint venture called Spectrum Biomedical that focuses on producing medical cannabis to patients in the U.K. The company also has a facility in Denmark and plans for facilities in Italy, Greece or Spain. In February, Canopy Growth announced Martha Stewart would join the company in an advisory role to help develop CBD products for humans and animals.

This Works CEO, Dr. Anna Persaud, will remain in charge of the company post-acquisition and will oversee the launch of new products. The company currently doesn’t offer any products that contain CBD. “As a leading wellness brand and a pioneer in sleep beauty products, we are passionate about the opportunity CBD offers beauty consumers. Canopy Growth will provide the expertise, research, scientific rigor and quality assurance that will allow This Works to drive the agenda in wellness beauty’s ever-evolving market,” said Dr. Persaud.