Canopy Growth acquires Tengram-backed This Works for C$74 mln

Canopy Growth Corp has acquired This Works Ltd, a London, U.K.-based provider of natural skincare and sleep solution products. The all-cash deal was valued at C$73.8 million. This Works CEO Anna Persaud will continue to lead the company. Canopy Growth, a Smith Falls, Ontario-based cannabis, hemp and cannabis device business, said the acquisition facilitates its entry into the natural wellness industry and expands its global presence. This Works was backed by Tengram Capital Partners, a U.S. consumer and retail private equity firm. Tengram invested in 2015.


SMITHS FALLS, CANADA and LONDON, ENGLAND— Canopy Growth Corporation (TSX: WEED, NYSE: CGC) (the “Company” or “Canopy Growth”) has finalized an all-cash transaction to acquire This Works for a purchase price of £43 million (CDN $73.8 million). Founded in 2004, This Works has cemented itself as a global leader in natural skincare and sleep solutions with a devout customer base spanning 35 countries.

Headquartered in London, England, This Works offers a range of high-quality natural skincare and sleep solution products that have rewarded the company with a loyal following of customers purchasing their best-known products including deep sleep pillow spray, morning expert hyaluronic serum, and skin deep dry leg oil.

Through their unique approach of formulating solutions that work in harmony with the 24hr body clock, This Works has evolved its product lines beyond a traditional viewpoint to a more complete regimen that maximizes skin – and overall wellness – at every phase of the day, starting with a good night’s sleep. This acquisition is a key aspect of a multi-faceted hemp and CBD strategy as Canopy Growth continues to build upon its vertically-integrated production and marketing platform, that currently includes thousands of acres of hemp production across several continents, hundreds of millions of dollars of capital investment into hemp-derived CBD production and processing, rapid expansion across the European Union and other key regions, and the introduction of new CBD-infused products and brands to the global beauty, wellness, and sleep solution space.

This Works CEO, Dr. Anna Persaud, will remain at the helm of business operations post-acquisition to continue moving the company forward. Since joining the company in 2009, Dr. Persaud has worked arduously to develop targeted skin solutions, which combine the brand’s knowledge of the body clock with modern lifestyle learnings, all backed by science. This approach to product development is best evidenced by This Works’ award-winning natural sleep solutions, with 4.2 million pillow sprays sold across Europe, the United Kingdom, China and the United States since the brand’s first deep sleep pillow spray launched in 2011. Together, Canopy Growth and This Works will continue to support all of This Works’ current operations with an accelerated focus on global expansion and product development to include a new line of skincare and sleep solution products infused with CBD.

“Since 2004, This Works has been committed to creating highly effective, natural skin solutions which are rooted in science and proven to work. We are excited about this new chapter in our company’s history and the opportunity to join Canopy Growth, the world’s leading diversified cannabis and hemp company,” shared Dr. Anna Persaud. “As a leading wellness brand and a pioneer in sleep beauty products, we are passionate about the opportunity CBD offers beauty consumers. Canopy Growth will provide the expertise, research, scientific rigour and quality assurance that will allow This Works to drive the agenda in wellness beauty’s ever-evolving market.”

“We believe CBD has the potential to disrupt the cosmetic and sleep solution industries and have been working for years to build and establish the right entry point into this opportunity,” said Bruce Linton, Chairman & Co-CEO, Canopy Growth. “As soon as we met with Dr. Persaud and her team, we knew they were the right partner to embark with on this journey.”

In addition to strengthening Canopy Growth’s product offering, bringing This Works “under the canopy” will enhance the Company’s international footprint and operations within the United Kingdom. In January 2019, the Company announced Spectrum Biomedical UK, a joint venture between Canopy Growth Corporation and Oxford-based research company Beckley Canopy Therapeutics to address the need for high-quality cannabis-based medicinal products in the UK.