Sean "Diddy" Combs is going into the world of cannabis.
The deal is worth up to $185 million and involves cannabis operations in New York, Massachusetts and Illinois. The transaction will create the country's first minority-owned, vertically integrated multi-state cannabis company and the world's largest Black-owned cannabis company.
Earlier this year, Cresco Labs agreed to purchase Columbia Care in a $2 billion deal that would make it the top US cannabis producer. One of the biggest deals in the cannabis industry required Cresco to sell assets in limited license markets such as New York.
Four retail stores and one production facility in New York state are included in the deal.
The acquisition provides immediate scale and impact needed to create a more equitable future in cannabis, according to a Friday press release.
In major metropolitan areas such as New York City, Boston and Chicago, the assets give Combs the ability to distribute branded cannabis products. Retail stores will be open in the three states.
The entire process, from growing and manufacturing to marketing, retail, and wholesale distribution, is a historic win for the culture.
The transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future.
The deal with Combs is "incredibly exciting" and the industry needs more diversity of leadership and perspective.
In addition to music, fashion, media, and spirits, the deal adds to Comb's portfolio.
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