Consumer CBD brand Kadenwood has aquired EcoGen Laboratories, a manufacturer specializing in hemp-derived CBD.
The deal, Kadenwood said, grants the Newport Beach, California-based startup ownership of all stages of product development, from the genetic makeup of seeds to the potency of the final product on store shelves.
The price tag of the deal was not disclosed.
EcoGen generated over $63 million in revenue last year through sales of its CBD materials to white label brands.
Kadenwood closed on $15 million in capital earlier this year and is raising a Series B funding round at a $180-million valuation. The company expects to reach $30 million in revenue by the end of 2020.
Kadenwood CEO Erick Dickens spoke with Benzinga about the transaction, what made EcoGen a valuable target, the company’s advertising goals and whether there will be more M&A on the horizon.
BZ: What makes the EcoGen acquisition crucial at this time?
Dickens: Kadenwood is determined to be the industry’s leading vertically integrated consumer goods company, and the EcoGen acquisition completes our genetics-to-shelf capability.