Sean “Diddy” Combs, Chairman and CEO Combs Enterprises, has entered into an agreement to purchase Cresco Labs and Columbia Care assets in the New York, Massachusetts and Illinois markets for a purchase price up to $185 million, including $110 million in cash and approximately $45 million of seller notes.
The transaction is Combs’ first investment in cannabis, the fastest growing industry in the U.S., and upon closing, will create the country’s first minority-owned and operated, vertically integrated multi-state operator.
Cresco says this industry-changing transaction is rooted in its vision to develop the most responsible, respectable and robust industry possible, and advances Combs’ mission to open new doors in emerging industries for Black entrepreneurs and other diverse founders who are underrepresented and underserved.
“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.
With brands spanning all markets
Establishing a track record for breaking new ground and redefining industries, Combs has built a portfolio of leading global brands across music, entertainment, spirits, fashion and media. Combs has also maintained a deep commitment to philanthropy, with a focus on empowerment through education and entrepreneurship and community activism.
Combs’ offer follows Columbia Cares’ announcement in June it was seeking a buyer for divestitures required for Cresco to close its previously announced acquisition of Columbia Care.
“The divestiture process has been progressing as planned with robust demand from a deep and diverse pool of bidders,” Columbia Care said in June, ”Predominantly new market entrants and single-state operators looking to expand into these markets.”
The sale includes the following states and locations:
- New York: Brooklyn (CC), Manhattan (CC), New Hartford (CL), and Rochester (CC) retail assets and Rochester (CC) production asset.
- Massachusetts: Greenfield (CC), Worcester (CL), and Leicester (CL) retail assets and Leicester (CL) production asset.
- Illinois: Chicago – Jefferson Park (CC) and Villa Park (CC) retail assets and Aurora (CC) production asset.
“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 Combs. “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.”