California-based Kadenwood announced on Thursday, August 20, that it would buy EcoGen Laboratories as it looks to tap into rising demand for hemp-derived cannabidiol (CBD) products, while creating an integrated supplier worth about US$250 million.
CBD, a derivative of the cannabis plant, is believed to ease anxiety and other ills without the high of its close cousin, marijuana. The product is legally allowed to be sold throughout the United States and can be infused with food and drinks.
The deal will help Kadenwood, which grows its own hemp and sells packaged products derived from it, gain access to EcoGen’s industrial-scale capacity for making ingredients and extracts.
“For us, it was the right time to unite the two very strong brands in the space. Both that are individually focused on different segments of the market – consumer packaged goods and the ingredient space,” Kadenwood Chief Commercial Officer Garrett Bain told Reuters.