Sean “Diddy” Combs, America’s latest Black billionaire, is set to spend $185 million to acquire licensed cannabis operations in three U.S. states — New York, Massachusetts, and Illinois — from Cresco Labs Inc. and Columbia Care Inc.
The $185-million deal represents Combs’ first investment in cannabis, and it will create the country’s first minority-owned, vertically integrated multi-state cannabis company, as well as the world’s largest Black-owned cannabis company.
The move comes after Combs Enterprises President Tarik Brooks discussed the opportunities in the cannabis market and how the company plans to expand in the legal cannabis space in the short to medium term.
While announcing his decision to acquire the operations, which will provide the immediate scale and impact needed to create a more equitable future in cannabis, Combs said the acquisition aligns with his mission to create opportunities for Black entrepreneurs in industries where they have traditionally been denied access.
Combs went on to state that the deal is “a historic win for the culture that will allow the empowerment of diverse leaders throughout the ecosystem.”
Cresco Labs CEO Charles Bachtell said the transaction is a significant step toward completing the Columbia Care acquisition and establishing a leadership position in one of the future’s largest consumer product categories.
Combs, who built his catalog as a musician, derives the majority of his wealth from his partnership with Diageo to create Ciroc Vodka, a move that saw him take the helm of Ciroc in 2007, guiding the brand from obscurity to multibillion dollar status.
The African-American businessman became a billionaire a day after Kanye West, now officially known as “Ye,” lost his billionaire status due to the termination of his lucrative deal with Adidas.
Combs’ net worth has increased from $740 million to $1 billion since 2019.
Earlier this year, he invested $2 million in REC, a Philadelphia-based startup, to fuel expansion and the launch of new operations in the United States.
