Puff Daddy! Diddy Appointed As Head Of Largest Black-Owned Cannabis Company
Source: Courtesy / Combs Enterprises
You may know him now by one of many names — currently he’s simply known as “LOVE” — but Sean Combs began his career as a twentysomething aspiring record exec known by his moniker of Puff Daddy.
Now, as the recently-announced billionaire music mogul celebrates his 53rd birthday today (Nov 4), it seems that he’s coming full circle as a “puff daddy” indeed as a new owner of Creso Labs, now the largest Black-owned vertically integrated cannabis company.
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The language used in his title is very important in understanding why this is such a big deal. For starters, “vertically integrated” means the cannabis operator has the combined ability to grow and manufacture, distribute branded products on a wholesale level to licensed dispensaries and operate retail dispensaries. In short, these companies manufacture from the growing process all the way up to the sale across a dispensary counter.
Creso Labs happens to be the No. 1 U.S. wholesaler of branded cannabis. Alongside the recently-acquired Columbia Care, Diddy has been appointed control of three major markets in New York, Massachusetts and Illinois.
More on how Diddy will oversee manufacturing below, including details on his multimillion-dollar buy-in, via Yahoo!:
“Columbia Care, one of the biggest cannabis operators in the U.S., is being acquired by Creso Labs and a divestiture of some of the former’s assets must be done in order for the acquisition to be complete. The assets that Diddy are now obtaining ownership of through this deal are in the markets of New York, Illinois, and Massachusetts. These hot spots will allow the businessman to grow, manufacture, wholesale, and distribute to licensed dispensaries in metropolitan areas such as New York City, Boston, and Chicago. He will also be able to operate retail stores in these three states.
The total purchase price Diddy is expected to shell out for these assets is $185 million USD, which will be paid concurrently with the closing of the acquisition. This total is comprised of approximately $110 million in cash and $45 million of seller notes. The remainder will be payable post-closing upon completion of certain industry-based milestones.”
In NYC, Diddy will acquire Columbia Cares dispensaries in Brooklyn and Manhattan, including production and retail assets from locations in Rochester. He’ll also take over a Creso Labs in New Hartford, NY. Massachusetts will see him getting a Columbia Cares in Greenfield, along with a Creso Labs in Worcester. He also gets Creso Labs retail and production assets in Leicester. Illinois gives him a Columbia Cares in Jefferson Park, alongside retail assets in Villa Park plus production assets in Aurora.
The deal is expected to close in early 2023 following proper protocols, including receipt of all required regulatory approvals, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and the official closing of Columbia Care’s Acquisition.
It goes without saying, but Sean Puffy Combs now has a whole new meaning!
