CALGARY, AB / ACCESSWIRE / October 11, 2021 / High Tide, a retail-focused cannabis company enhanced by the manufacturing of proprietary and licensed consumption accessories, is pleased to announce that it is taking another step towards solidifying itself as a major player within the global e-commerce marketplace for hemp-derived CBD products by entering into a definitive agreement (the "Acquisition Agreement") pursuant to which High Tide will acquire 80% of Blessed CBD for $12.4 Million (the "Transaction"), and will have a three-year option to acquire the remaining 20% of Blessed at any time.
The acquisition of Blessed CBD will turn High Tide into a major player in the UK's growing CBD market.
Founded in 2019 with its headquarters in Scotland, Blessed has quickly grown to become one of the most popular brands for hemp-derived CBD products across the UK, including CBD oils, creams, gummies, and capsules. In 2020, Blessed had almost 5 million site visits and an average order value of approximately $100. Blessed's founder, Vithurs Thiru (known more commonly as "V"), will join the High Tide team as Senior Manager of Search for the Company, and will help grow High Tide's CBD business globally.
"I'm very pleased to announce the addition of Blessed CBD, the UK's top CBD brand as designated by several prominent publications, into the High Tide family. We continue to increase our online prowess by adding asset-light businesses to our growing global e-commerce portfolio. Blessed is a fully direct-to-consumer platform that generates industry-leading gross margins as well as EBITDA margins that will continue to add to our consolidated margin profile," said Raj Grover, President and Chief Executive Officer of High Tide.
"This acquisition marks our entry into the highly lucrative and rapidly-growing UK CBD space which we expect to serve as a launching pad for High Tide to further penetrate the EU market for hemp-derived CBD products, while also taking advantage of cross-selling opportunities related to our in-house product lines. I have been very impressed with the amazing business that V has been able to build within just two years, and look forward to welcoming him and the rest of the Blessed team into our company," added Mr. Grover.
Blessed CBD has a strong financial profile, which generated 81% gross margins and 53% EBITDA margins in 2020. The acquisition creates meaningful synergies and cross-selling opportunities across all of High Tide's e-commerce platforms.
"Blessed CBD has experienced rapid growth and success from inception, and our goal is to become the most sought-after CBD brand globally. Our team is super excited to be joining hands with Raj, and by leveraging High Tide's existing resources and reach, I couldn't be more excited about the future," said Vithurs.
"I look forward to working with Raj to accelerate the digital presence of High Tide's brands, and to position High Tide as one of the leading vertically-integrated cannabis companies in the industry. This acquisition provides unparalleled opportunities for growth to serve our current and future customers, expand into emerging new markets, and introduce new products unmatched in quality," added Mr. Thiru.
About Blessed CBD:
Blessed CBD is one of the leading online retailers of hemp-derived CBD products in the UK. The company provides a marketplace with a wide variety of high-quality products and formulas, affordable pricing, rapid dependable shipping, and surprisingly personable customer service.
Senior Manager of Search
Capital Markets Advisor
High Tide Inc.
SOURCE: Blessed CBD