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CHICAGO - Sean Combs known to fans and "Diddy" or "Puff Daddy" is entering a business deal that would create the first minority-owned, vertically integrated multi-state cannabis operator.
A company owned and operated by the rapper signed a tentative agreement Friday to purchase cannabis operations from Cresco Labs for $185 million.
The transaction is Combs’ first investment in cannabis.
These vertically integrated New York, Illinois, and Massachusetts assets will give Combs the ability to grow and manufacture cannabis products; wholesale, and distribute those branded products to licensed dispensaries in major metropolitan areas like New York City, Boston, and Chicago; and operate retail stores in all three states.
"For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future," said Charles Bachtell, Cresco Labs’ CEO. "For an industry in need of greater diversity of leadership and perspective, the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous…and incredibly exciting. We’re thrilled to welcome Sean and his team to the industry."
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Sean "Diddy" Combs | Cresco Labs
Releasing the operations in New York, Illinois and Massachusets is necessary for Cresco to close the sale of Columbia Care, a release from Cresco says.
"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 Combs, Chairman and CEO Combs Enterprises. "Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion."
Combs will acquire a location in Chicago's Jefferson Park neighborhood, as well as locations in the suburbs Villa Park and Aurora.