M&A Deal Summary

Vertical Wellness Acquires Organic Candy Factory

On November 18, 2020, Vertical Wellness acquired food company Organic Candy Factory

Acquisition Highlights
  • This is Vertical Wellness’ 1st transaction in the Food sector.
  • This is Vertical Wellness’ 2nd transaction in the United States.
  • This is Vertical Wellness’ 1st transaction in California.

M&A Deal Summary

Date 2020-11-18
Target Organic Candy Factory
Sector Food
Buyer(s) Vertical Wellness
Deal Type Add-on Acquisition

Target

Organic Candy Factory

San Francisco, California, United States
Organic Candy Factory is a producer of food products contain ZERO Gluten, Gelatin, Pesticides, Preservatives, Nuts, Corn Syrup, GMOs, Chemicals, Artificial Colors, Flavors, or Sweeteners They are also free of the Top 8 Allergens: Wheat, Egg, Peanuts, Tree Nuts, Dairy, Shellfish, Soy, & Fish. Organic Candy Factory was founded in 2010 and is based in San Francisco, California.

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Buyer(S) 1

Buyer

Vertical Wellness

Agoura Hills, California, United States

Category Company
Founded 2019
Sector Consumer Products
DESCRIPTION

Vertical Wellness is a vertically integrated consumer-focused health and wellness brand company with innovative Hemp cannabinoid solutions. The company's mission is to help people by bringing the most innovative and effective portfolio of cannabinoid (CBD and others) brands to the market. Initial VWEL brands include Kathy Ireland Health & Wellness, Taos, Lap Dog, Par5, Halogenix, Wingra Farms, Neutrate, USMCC, and Hemp-Moji. VWEL Services leverages its extensive investment and team knowledge by helping the entire industry with strategic, financial, branding, sales, and hemp processing solutions. Vertical Wellness has operations in California and Kentucky and cultivated over 1,800 acres of hemp on partner farms in 2019.


DEAL STATS #
Overall 2 of 2
Sector: Food M&A 1 of 1
Type: Add-on Acquisition M&A Deals 2 of 2
State: California M&A 1 of 1
Country: United States M&A 2 of 2
Year: 2020 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-22 Tech-Holdings

New York, United States

Tech-Holdings is a technology-focused cannabinoid (CBD and others) research and development company. One of the early R&D investors in cannabinoid ingredient efficacy and delivery methods, Tech-Holdings developed a body of Intellectual Property "IP" around cannabinoid delivery that make products more effective (higher bioavailability) and faster acting. One of the primary advantages of products utilizing the patented delivery system is the rapid diffusion of lipid molecules across the epithelium and into the bloodstream bypassing first-pass liver processing. A second advantage is the increased efficiency of absorption. The limited absorption and diffusion profiles of most of the current products in the market fail to deliver cannabinoids across the epithelium or the upper GI tract. This limits absorption to the intestine, thus subjecting all cannabinoids to first-pass liver processing which may reduce effectiveness. Tech-Holdings technology provides for rapid diffusion both across the epithelium and into the bloodstream to efficiently deliver beneficial molecules. It also enables the production of cannabinoid enriched powders that easily mix with water allowing for the development of fast-acting topicals/targeted cosmetics and a wide variety of edible/consumable products.

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