A top-selling California cannabis company is preparing to acquire a top-selling California edible company.
Carpinteria-based Glass House Brands Inc. today announced a definitive agreement to acquire Plus Products Inc. for approximately $25.6 million.
According to Glass House, the acquisition will be through a combination of unsecured convertible debt, equity, and additional performance-based consideration.
In April, Mercer Park Brand Acquisition Group announced plans to acquire Glass House Group for $567 million.
Mercer Park made a $50 million strategic investment in Glass House in May.
Glass House CEO Kyle Kazan says that, as one of the fastest-growing cannabis categories, edibles are a key component of company growth strategy.
“Plus has built a very strong brand in the gummy segment, and in the very competitive California and Nevada markets, no less,” says Kazan. “Plus’ diverse and well-recognized line of edibles, including dual-action sleep and strain-specific products, is the ideal complement to our portfolio.”
Kazan says Glass House’s vertically integrated platform will facilitate expanded distribution of Plus products to more than 700 stores in its network.
Top Ranked Brands
With its cannabis brand ranking as the top flower brand by sales in California in Q3 2021, Glass House says it is working to create the largest cannabis brand-building platform in the state.
In Q3 2021, the Plus edible brand ranked fourth by sales in California.
But while Plus ranks fourth overall for edible sales, the company is the top cannabis-infused gummy brand in California.
“We think there is a long runway for Plus on the Glass House platform,” says Kazan. “Based on Headsets November data, Plus outsells Wana in California, the nation’s largest cannabis market, by a multiple of nearly 10x. With its California presence and activities in other states, we believe Plus has a wide path to playing at a national level at least equal to Wana, which was acquired by Canopy Growth in October at a value in excess of $297.5 million.”
Citing BDS Analytics data, Glass House says that it would be the only company in California to hold top-five positions in both the flower and edible categories after the acquisition.
Plus Co-Founder and CEO Jake Heimark says they developed Plus to be part of the strongest brand platform in cannabis, something that is coming to pass by joining Glass House.
“Our mission to make cannabis safe and approachable, with high-quality products that deliver consistent consumer experiences, is perfectly aligned with Glass House’s reputation for providing outstanding cannabis products, produced sustainably for the benefit of all,” says Heimark. “We are looking forward to working with Glass House to continue to pursue this shared goal.”
Glass House expects its acquisition of Plus to close in Q1 2022.