Perrigo Company PLC (NYSE: PRGO), one of the world’s largest producers of over-the-counter self-care products, is entering the CBD business.
Perrigo will acquire an equity stake of roughly 20% in Kazmira for $50 million. $15 million will be paid upon the closing of the transaction, with the balance due within an 18-month period.
The company announced this move will be enabled by a strategic minority investment and long-term supply deal with hemp-based CBD producer Kazmira LLC.
Further Bettering Lives
By partnering with the Watkins, Colorado-based company, Perrigo believes it can further its mission “to make lives better by bringing quality, affordable self-care products that consumers trust everywhere they are sold,” a press release explained.
See Also: As Cannabis Stocks Dip, Hexo Is Among The Worst, Cannabis ETF Manager Says
According to a company spokesperson, this partnership focuses on:
- Large scale production and supply of current Good Manufacturing Processes (cGMP) compliant, THC-free CBD.
- Utilizing the THC-free, hemp-based CBD supply for Perrigo to launch products globally.
- Leveraging the exclusive supply agreement for the U.S. store brand market.
“Perrigo’s strategy is to bring a science-based approach and credibility to the CBD market and to build long-term trust with retailers and consumers through product quality, reliability and consistency, which is lacking in the market today,” Perrigo’s CEO and president Murray Kessler told Benzinga. “Perrigo is looking to lead the industry with rigorous quality standards and proactive engagement with regulators, creating a great opportunity to accelerate the growth of our science-based product portfolio.”
See Also: We Tested Some Of The Best-Selling Cannabis Gear To See If They’re Worth The Hype
Perrigo, which has a market cap of about $7.4 billion, currently provides more than 1,900 over-the-counter products sold under 130 different customer store brand labels at major retailers like Walmart Inc (NYSE: WMT), CVS Health Corp (NYSE: CVS), Amazon.com, Inc. (NASDAQ: AMZN), and more.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.