Press Release November 07, 2022

Sean “Diddy” Combs To Acquire Cannabis Assets in Three Markets, Creating the First Minority-Owned, Vertically Integrated Multi-State Cannabis Operator

Combs’ Proposed Acquisition Will Create the Largest Black Owned Cannabis Company in The World and Affirms His Commitment to Economic Inclusion of Underrepresented Groups in Cannabis

Goodwin’s Cannabis and M&A teams are proud to have advised an entity owned and controlled by Sean “Diddy” Combs on a definitive agreement to acquire certain New York, Illinois, and Massachusetts assets from Cresco Labs (CSE:CL) (OTCQX:CRLBF) and Columbia Care (NEO:CCHW) (CSE:CCHW) (OTCQX:CCHWF). 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. Total consideration for the transaction is an amount up to $185 million.

This industry-changing transaction advances Combs’ mission to open new doors in emerging industries for Black entrepreneurs and other diverse founders who are underrepresented and underserved. Throughout his legendary career, Combs has solidified himself as one of the most successful business leaders and cultural icons. Establishing an unrivaled track record for breaking new ground and redefining industries, he 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.

These vertically integrated New York, Illinois, and Massachusetts assets provide Combs the ability to grow and manufacture cannabis products wholesale, distribute those branded products to licensed dispensaries in major metropolitan areas like New York City, Boston, and Chicago, and operate retail stores in all three states.

“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, Chairman and CEO Combs Enterprises. “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.”

The Goodwin team was led by Nathan HaglerJennifer FisherBrett Schuman, and Barzin Pakandam.

“Goodwin is very proud to be supporting the Combs team not just with this industry-reshaping transaction, but also with the broader social justice mission for the new company articulated by Mr. Combs,” said Schuman. “This is about much more than just making and selling great cannabis products.”

For more details, read the press release and Wall Street Journal article.