Puff Daddy Buys New York Cannabis Business for $185 Million

By Clayton RiversHemp Industry

Puff Daddy Acquires Cannabis Businesses in New York for $185 Million

On November 4, 2022, Cresco Labs, the largest wholesale distributor of cannabis products, and Columbia Care, one of the largest cannabis producers and suppliers, announced the signing of definitive agreements to sell certain assets in New York, Illinois, and Massachusetts to rapper Puff Daddy (Sean Combs). The sale of these assets is necessary for Cresco to complete its previously announced acquisition of Columbia Care. The deal is expected to close simultaneously with the completion of the Columbia Care acquisition. The total value of the transaction is up to $185,000,000.

Details of the Acquisition

As part of the deal, the following combination of Cresco and Columbia Care assets will be transferred to Combs’ ownership and management:

  • New York: Retail assets in Brooklyn, Manhattan, New Hartford, and Rochester, as well as production assets in Rochester.
  • Massachusetts: Retail assets in Greenfield, Worcester, and Leicester, along with production assets in Leicester.
  • Illinois: Chicago retail assets in Jefferson Park and Villa Park, and production assets in Aurora.

Puff Daddy’s First Investment in the Cannabis Industry

This agreement marks Combs’ first investment in the cannabis industry, which he says is part of his goal to diversify the sector. According to the Minority Cannabis Business Association, less than 2% of legal cannabis businesses are Black-owned.

“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,” commented the rapper.

Industry Impact and Future Prospects

Nicholas Vita, CEO and co-founder of Columbia Care, noted that the acquired assets give Combs’ team a significant market presence, allowing them to have a major impact on the industry as a whole: “We can’t wait to see how he helps shape the cannabis industry through his entrepreneurial leadership and innovation,” Vita said.

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