Diddy’s Deal To Own Largest Black-Owned Cannabis Company Falls Through
In 2022, it was reported that Cresco Labs, a cannabis wholesaler, and Columbia Care intended to sell their New York, Illinois, and Massachusetts assets to Sean “Diddy” Combs. Once completed, the deal will be worth $185,000,000. Sadly, according to Benzinga, the deal will not take place.
Cresco Labs and Columbia Care announced on July 30, 2023, that the planned merger, agreed upon on March 23, 2022 and amended on Feb. 27, 2023, has been mutually terminated.
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction,” said Charles Bachtell, CEO and co-founder of Cresco Labs, in a written statement.
This has thwarted Diddy’s intention of becoming the country’s first Black-owned-and-operated, vertically integrated multi-state cannabis operator. It was also reported that the agreements signed on Nov. 4, 2022, to divest the New York, Illinois, and Massachusetts assets of Cresco and Columbia Care to an entity that would have been owned and controlled by Combs Enterprises owner were also terminated. That became effective on July 28, 2023.
It was a blow to Diddy, who previously stated he was trying to build a business for Black people in the cannabis industry.
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Diddy, chairman and CEO of Combs Enterprises, in a written statement when the deal was announced in November 2022.
This would have been Diddy’s first investment in the industry. Combs Enterprises’ current properties include Sean John, Capital Prep, AQUAhydrate, Combs Wines and Spirits (Ciroc vodka, DeLeón tequila), Empower, and Revolt.