A major Colorado CBD maker will purchase a Rhode Island company that makes CBD topical products, the two companies announced Monday.
Charlotte’s Web, a producer of hemp-derived CBD wellness products based in Boulder, Colorado, will acquire Abacus Health Products of Woonsocket, Rhode Island. for implied total equity consideration of approximately CA$99 million ($68.2 million).
Under terms of the deal, Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for each Abacus share held, according to a joint statement.
The acquisition:
- expands Charlotte’s Web’s product portfolio in the topicals, personal beauty and sports categories
- increases the combined companies’ retail presence from 11,000 retail stores to 15,000
- expands selling channels to Abacus’ network of 16,500 medical practitioners
“The complementary strengths of our relative market positions made this merger a logical strategic move,” Charlotte’s Web CEO Deanie Elsner said in a statement.
Elsner said because Abacus’ products were positioned in adjacent categories, the two companies’ combined reach has “limited shelf overlap,” but together they can work to extend their marketshare.
Abacus Health Products trades on the Canadian Securities Exchange as ABCS.
Charlotte’s Web trades shares on the Toronto Stock Exchange as CWEB.
