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Charlotte’s Web to acquire Abacus Health Products

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BOULDER, Colo. — Charlotte’s Web and Abacus Health Products have entered into a definitive arrangement agreement where Charlotte’s Web will acquire Abacus.

This acquisition will combine Charlotte’s Web, the market leader in hemp-derived CBD wellness products, with Abacus, the market leader in over-the-counter topical products combining active pharmaceutical ingredients with hemp extract, to create the world’s largest vertically integrated hemp-derived CBD company. For Charlotte’s Web the combination benefits from the current U.S. regulatory environment which favors topical- CBD products within the food/drug/mass (“F/D/M”) channel.

For Abacus, the acquisition provides the advantages of joining an established and industry leading platform and benefiting from leading CPG management and brand equity with a low-cost vertical supply chain producing “the world’s most trusted hemp extract. The combined entity is anticipated to represent approximately 34.7% of U.S. CBD sales within the F/D/M channel. Combined sales for the third quarter of 2019 were $29.1 million.

“The complementary strengths of our relative market positions made this merger a logical strategic move,” said Deanie Elsner, chief executive officer of Charlotte’s Web. “With this acquisition we strengthen the business to reflect the evolution of the category. Because most of Abacus’s products are positioned in adjacent categories, our combined distribution reach has limited shelf overlap. Together we are the most developed CBD company across every channel and segment and positioned to accelerate our growth and extend our market share. Furthermore, it enables us to drive more scale production through our vertically integrated infrastructure.”

“This transaction provides a unique opportunity to our shareholders and employees to participate in the compelling potential of the combined businesses,” said Perry Antelman, chief executive officer of Abacus.   “Abacus is one of the largest suppliers and distributors in the United States of topical products infused with hemp extract to the F/D/M and healthcare practitioner markets. By joining with Charlotte’s Web, we have the opportunity to maximize our growth by leveraging the Company’s leading brand, vertical integration, infrastructure, expertise, financial position and capital markets presence, and position the combined Company to deliver benefits for our stakeholders over the long-term.”


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