Sean 'Diddy' Combs enters multi-million-dollar purchase of largest U.S. cannabis company
CHICAGO — Hip Hop mogul Sean 'Diddy' Combs enters a tentative agreement to purchase the largest U.S. wholesaler of branded cannabis, Cresco Labs.
The company announced Friday the signing of definitive agreements to divest certain assets in New York, Massachusetts, and Illinois to be owned and controlled by Combs.
The cost of the transaction totals $185 million.
Those assets will provide Combs the ability to grow and manufacture cannabis products, wholesale, and distribute those products to licensed dispensaries in major metropolitan areas like New York City, Boston, and Chicago, and operate retail stores in all three states.
"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."
The purchase is Combs' first investment in cannabis - the fastest-growing industry in the U.S.
"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."
Columbia Care CEO and Co-founder, Nicholas Vita added, "These assets offer the Combs' team significant market presence, enabling them to make the most impact on the industry as a whole. It's been clear to us that Sean has the right team to carry on the strong legacy of these Columbia Care and Cresco Labs facilities, and we can't wait to see how he helps shape the cannabis industry going forward through his entrepreneurial leadership and innovation."
The purchase will make Combs the first minority owner of a vertically integrated multistate branded cannabis operator.
In Illinois, he will have control over locations in Jefferson Park, Villa Park, and Aurora.