- $12 million transaction
- Provides Real Brands with world class R&D and manufacturing capabilities for 300% increase in production capacity and 150+ brands
- Specializes in sports medicine, health and wellness herbal supplements and CBD products
- Expands Real Brands’ distribution to major retail chains nationwide
North Providence, RI, and Golden, CO, Sept. 27, 2022 (GLOBE NEWSWIRE) — Real Brands Inc. (OTCQB: RLBD) announced today that it has signed the definitive agreement for the acquisition of substantially all the assets of Boulder Botanical & Biosciences Laboratories, Inc. (Boulder Botanical), a manufacturer of white-label and private-label wellness and sports medicine herbal supplements and CBD products, from Frankens Investment Fund, LLC, which had acquired Boulder Botanical in April 2022. The acquisition will include Boulder Botanical’s brands for human and pet markets, IP, and distribution at the 27,000 sq. ft. R&D and production facility in Golden, Colorado. The value of the transaction is $12 million, with a $1 million operating capital commitment. Boulder Botanical will retain its name and operate as a division of Real Brands.
Thom Kidrin, President & CEO of Real Brands Inc., stated, “Boulder Botanical has had an excellent reputation for creating quality sports medicine, health and wellness herbal supplements and cannabinoid formulations and its white-label manufacturing services exceeding industry standards. We expect to build upon that solid foundation. Boulder Botanical’s existing national distribution network serving CVS, Target, Costco, and other retailers, combined with Real Brands’ expertise in online sales and the metaverse, enables ready access to millions of existing customers and millions more potential customers online and in person. With this acquisition, we have increased our production capacity by 300%, have added a portfolio of 150+ brands, extensive IP, and a skilled R&D team to create hundreds more products to meet the demand of the burgeoning herbal supplement and CBD markets.”
The U.S. Herbal Supplements Market size was estimated at $2.2 billion in 2021, $2.6 billion in 2022, and is projected to grow at a Compound Annual Growth Rate (CAGR) of 10.62% to reach $4.1 billion by 2027, as forecast by ResearchandMarkets.com. ResearchandMarkets.com’s July 8, 2022 report anticipates the global herbal supplements market will grow from $32.1 billion in 2021 to $49.1 billion by 2027, exhibiting a CAGR of 7.34% during 2021-2027
Research firm Global Market Insights reports that the Global CBD market in 2021 was $12.8 billion (US portion was $7.7 billion) and is expected to grow at a CAGR of 21.7% to $56.2 Billion by 2028 due primarily to “rising awareness of health benefits of CBD and its effectiveness in pain management and various other treatments.”
“Boulder Botanical is a gem and one of the hidden cornerstones of the health and wellness herbal supplement and CBD industry that has been providing white-label products manufactured to the highest standards to major retailer chains,” noted David Frankens, owner of Frankens Investments. “We jumped at the opportunity to acquire Boulder when it became available because we knew that under the right leadership, the sky would be the limit. We are maintaining a position as strategic equity shareholders in Real Brands. With this acquisition, we believe Real Brands under Thom Kidrin’s leadership, has the capability to capture a dominant position within the CBD industry and be a significant supplier in the health and wellness herbal supplements industry.”
Turning Point Brands, Inc. (NYSE: TPB), is also a long-time strategic investor in Real Brands. Turning Point Brands is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients,
Real Brands has contracted to retain key Boulder Botanical employees for a seamless transition, with no interruption in supply to customers.
Highlights of Boulder Botanical’s capabilities include:
- One of the largest and most efficient manufacturing platforms in the CBD sector and a major manufacturer of herbal supplements. It supports multiple production lines for 150+ proprietary formulations spanning cosmetics, topicals, tablets, drink powders, tinctures, ointments, gels, energy shots, roll-ons, supplements, and more. The production facility is capable of large volume production and scaling.
- Fulfillment services for products distributed through some of the nation’s largest retail channels, including CVS, Sam’s Club, Target, Whole Foods, Safeway, Costco, 7-Eleven, and Circle K;
- Original product R&D for nutraceutical-grade consumer products;
- In-house brands that include APRA™, SmartLeef™, and dozens of white-label brands;
- 25+ years of combined experience in consumer-packaged goods and compliance;
- A full complement of certifications and registrations, including FDA-Registered Manufacturing/Distribution & Fulfilment, GMP quality assured, Certified Kosher Ingredient Supplier, CDPHE Licensed Manufacturing Facility, CO Dept of Ag Hemp Seed Seller and Grower License, International Cosmetic Ingredient Assignment Registration for supply Cosmetic Industry; and
- The highest quality and efficacious ingredients with full transparency from seed to shelf.
The facility was previously owned by General Electric (GE) and used to manufacture medical devices such as pacemakers. The facility’s infrastructure and construction with Good Manufacturing Practice (GMP) regulations in mind, its safety features, vacuum-sealed rooms, commercial kitchens, and clean rooms are all ideal for producing nutraceutical-grade CBD and herbal supplement products in compliance with certified standards used in the nutraceutical and pharmaceutical industries.
# # #