Canopy Growth enters skincare space

The cannabis company has acquired U.K. company This Works to develop CBD-infused health and beauty products.

Canopy Growth has made a stride in establishing a presence in the health and beauty space, acquiring skincare company This Works in a $73.8 million CAD all-cash deal.

This Works, founded in the U.K. in 2004, offers a number of wellness-focused skincare and sleep products, from moisturizers and cleansers to pillow sprays it claims can lead to better sleep. It sells its products in 35 countries, and has sold 4.2 million pillow sprays alone since introducing them in 2011.

In addition to supporting its current operations, Canopy will place a focus on accelerating This Works’ global expansion, as well as introduce new CBD-infused products.

This Works doesn’t currently offer any CBD-based products, but Canopy sees the company as part of a multi-faceted strategy around CBD- and hemp-based products in the beauty, wellness and sleep solutions categories. Bruce Linton, chairman and co-CEO of Canopy Growth, says CBD “has the potential to disrupt the cosmetic and sleep solution industries” and the company has been working to find the right entry point into the category.

CBD has gained significant attention from the burgeoning cannabis industry in response to consumer interest related to its alleged health benefits. In February, Canopy announced a partnership with media icon Martha Stewart to develop CBD-infused products, with a particular focus on products for pets. It has also been increasing its capacity for the development of CBD- and hemp-based products, including securing a 308,000 sq. ft. facility in New York last month.

Canopy also pointed out in a release announcing the deal that the acquisition further grows its international footprint. Earlier this month, it acquired Germany’s C3 Cannabinoid Compound Company, which develops cannabanoid-based medical treatments, following January’s launch of Spectrum Biomedical UK, a joint venture with Beckley Canopy Therapeutics to develop medical cannabis products for the U.K. market.