CMP Wellness, a privately held distributor of vaporizers, cartridges, and accessories in Redondo Beach, has been acquired by Kush Bottles Inc. in a transaction valued by Bloomberg at $21 million.
Kush Bottles, which makes packaging, supplies, accessories, and branding solutions for the cannabis industry, completed the acquisition of CMP for $1.5 million in cash and 7.8 million shares of stock on May 1.
The Santa Ana-based company founded in 2010 said the acquisition would diversify its product range, open new distribution channels, and provide the opportunity to cross-sell its existing product lines. CMP was founded in 2013.
“CMP has established itself as a leader in the vaporizer product market, which is one of the fastest growing segments in the cannabis packaging industry,” Nicholas Kovacevich, chief executive of Kush Bottles, said in a statement. “This reputation as a distributor of best-in-breed products aligns with Kush Bottles’ premium image and strengthens our market positioning.”
Kush expects to add CMP’s five employees to its payroll of 50, said Ryan Selewicz, director of marketing at Kush.
Kush Bottles said it has sold more than 100 million bottles of its products and services more than 3,000 customers across the United States and Canada. The company noted that it primarily services legally operated medical and adult-use dispensaries, growers, and marijuana-infused product manufacturers.
Manufacturing and trade reporter Shwanika Narayan can be reached at firstname.lastname@example.org. Follow her on Twitter @shwanika.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Clearlake Capital Portfolio Company Acquires Amcor Industries
- BottleKeeper Raises $1 Million From 'Shark Tank' Investors
- Crude Oil Tanker in Long Beach Fined for Leaks
- MedMen to Acquire PharmaCann for $682 Million
- $31 Million in Fake Perfume Seized at the Ports
- Packaging Company Boxes Up Distributor
- Toymaker Suits UP with ‘Incredibles’
- OpenGate Capital to Sell Nakan for $265 Million