Altria Group Inc.-backed Canadian cannabis company Cronos Group Inc. said Aug. 2 that the company will buy four subsidiaries of private equity firm Redwood Holding Group LLC for $300 million in cash and stock.
The subsidiaries make hemp-derived cannabidiol-infused skin care and other products.
Toronto-based company will pay $225 million of the total consideration in cash while the rest will be in newly issued Cronos Group common shares.
Redwood subsidiaries co-founders Robert Rosenheck and Cindy Capobianco will join Cronos Group and continue to lead the of the Redwood platform with its same team. Brand names and operating locations will remain unchanged.
The transaction, which includes the net of Redwood subsidiaries' estimated cash and debt, is expected to close in the third quarter of 2019. The deal is subject to customary closing conditions and regulatory approvals.