Over the counter (OTC) CBD-infused, topical medications provider Abacus Health Products acquired principal assets belonging to CBD-infused personal care provider, Harmony Hemp™ as of Monday, February 10, 2020 reports Financial Post.
The acquisition is expected to pave a new path for Abacus as the firm continues to expand its presence by 50% to over 12,000 retail locations. This will be a new milestone for the firm, as it will be deemed the largest “retail footprint of topical CBD” ever.
According to the CEO of Abacus, Perry Antelman, the acquisition will surely kick things up a notch, not only in terms of retail locations, but also interactions between suppliers and distributors; making their team the largest in the U.S. As for the reason behind choosing to acquire Harmony Hemp, he said:
“Harmony Hemp has long-standing relationships with quality retailers in the F/D/M channel and highly complementary products with Abacus.” Furthermore, he sees their shared commitment to bringing innovative products to the market as what brought them closer together.
Founder and President of Harmony Hemp, Courtney Roundy, also expressed a few words regarding this endeavor. In particular, she said Abacus was a perfect fit because of the emphasis they continue to place on “science, research and product efficacy,” adding that it was the number one reason they chose to enter the CBD space. Another facet that Harmony Hemp was drawn to was Abacus’ ability to introduce topicals without clashing with regulatory compliances.
With the acquisition, both of Harmony Hemp’s founders will be joining Abacus, specifically playing a role in the former’s senior management team. Finally, comes the acquisition cost. Turns out, Abacus has agreed to pay a total of $5.5 million USD, which will be completed partly in cash and partly in Abacus’ voting shares.