CBD NEWS
HempFusion Grows Footprint, Capabilities with 2 Acquisitions
DJ Khaled Debuts CBDEnhanced Men’s Grooming Line
HempFusion Wellness has made two acquisitions in as many weeks, growing its product portfolio and retail footprint. In May, the Denver-based company acquired cannabis body care and topical company Apothecanna and acquired Sagely Enterprises, maker of Sagely Naturals, which has mass distribution in more than 14,000 U.S. retailers. With the $15 million Apothecanna acquisition, HempFusion gains significant CBD topical distribution to 1,800 stores — including CVS Pharmacy and 7th Sense — as well as significant market share in the Canadian marketplace via an existing strategic business relationship. Apothecanna also brings the company significant e-commerce revenues, which comprise roughly 50% of Apothecanna’s revenues. With more than $4 million in sales in 2020, the Apothecanna acquisition immediately will be accretive to HempFusion when it closes. The company also brings with it more distribution channels, a robust e-commerce platform and topical product efficiencies with the nearterm opportunity for expansion into ingestible products. Besides the stock-and-cash consideration, Apothecanna is eligible for as much as a $10 million milestone payment if the company can achieve certain revenue targets within 12 months of closing. HempFusion’s acquisition of Sagely Naturals will see the company paying $25 million upfront, including $2 million in cash and $23 million in HempFusion common shares. Sagely Naturals began in 2015 and is the nation’s largest female-founded CBD wellness brand with distribution at CVS Pharmacy, Rite Aid, Albertsons banners, Sprouts Farmers Market, Nordstrom and several independent regional grocers and natural food stores. The brand has 23% market share in the drug channel and 13.8% share in the U.S. multi-outlet channel, according to IRI data. Besides its sales prowess, Sagely Naturals counts among its consumers and celebrity investors Cameron Diaz, Zoe Saldana and Molly Sims. Sagely Naturals, which had $4.2 million in revenue in 2020, employs a C-suite HempFusion said would bring expertise in marketing, innovation and relationships to the company. HempFusion also said it has potential to expand further into ingestibles, and its suite of complementary products offers significant cross-platform opportunities in their respective distribution channels. “Upon closing, the acquisition of Sagely Naturals immediately adds significant value to shareholders. By more than tripling our 2020 revenue (when combined with the closing of Apothecanna), expanding to over 15,000 stores, expanding our distribution strategy to six channels, combining some of the top executive talent in the industry, and bringing together over 75 incredible and best-selling SKUs, HempFusion is in its strongest position to date,” said Jason Mitchell, co-founder and CEO.
DJ Khaled is expanding his business horizons. The music mogul has partnered with Endexx to create Blesswell, a line of CBD-infused men’s grooming products that the company said is meant to offer an essential toolkit for men’s self-care needs. “Aside from love and family, health and wellness are our greatest blessings. That’s the key,” DJ Khaled said. “Reflecting on my quest to a better mind and body, I found my daily habits to have the most impact on my overall outlook of life. I created Blesswell to provide men with an at-home CBD grooming solution that allows them to put their game face on, build their confidence and get their mind in the right zone.” The Blesswell line includes: • Blue Charcoal Face Mask, a pore-reducing mask that is naturally scented with lavender and mint. Designed for all skin types, the product retails for $23; • Conditioning Beard Oil, a nongreasy blend that combines watermelon seed and argan oil to soften and condition beards, and promote growth while eliminating irritation. It retails for $26; • Daily Moisturizer, a lightweight cream formulated with hyaluronic acid, witch hazel and chamomile to soothe dry skin, keep oiliness in check and tone the appearance of pores. It retails for $20; • Facial Cleaning Scrub, a deep-cleaning formula with calendula and willowbark; • Lathering Body Wash, made with a combination of arnica and green tea to soothe tired muscles while rejuvenating and conditioning skin. It retails for $15; and • Ultimate Shave Cream, a non-lathering shave cream with cloudberry and shea butter to offer a closer, nonirritating shave. It retails for $19. All products are infused with 300 mg of CBD. “We are elated to be partnering with the multi-hyphenate powerhouse that is DJ Khaled,” said Todd Davis, CEO of Endexx. ”Creating these unique premium products with someone of his caliber has been monumental for the Endexx Corporation brand. His passion for the category started with his personal and professional journey in the wellness realm, and he has since become someone people look up to for personal care advice and expertise.” The brand noted that Blesswell products are third-party tested, and each product includes traceable lot codes that allow shoppers to view product certificates of analysis.
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