Cannabinoid group Tenacious Labs has continued its buy-and-build strategy with the acquisition of Rover’s Wellness, a petcare retailer specialising in THC-free CBD.
It’s the third deal struck by the London-headquartered business since it launched in early 2021 with ambitions to build a global CBD platform, and diversifies the group into the high-growth petcare market.
Based in Tennessee in the US, Rover’s Wellness was founded by RaChelle Baca-Lobre in 2018 after her pet was diagnosed with cancer.
The brand offers a range of CBD oils, salves and treats aimed to support joint flexibility and mobility, ease anxiety and promote long-term health for dogs, cats and horses.
Tenacious Labs said the acquisition represented “an important milestone” in its strategy to become a leading global consumer products group.
As part of the deal, Baca-Lobre will join Tenacious Labs as global director of sales for the newly created pet division, which the group plans to scale further in the coming months.
Tenacious Labs CEO Nicholas Morland said Rover’s Wellness had grown rapidly since 2018 and launched “genuinely market-leading products”, which had been well received by customers across the US.
“This acquisition will enable us to kick-start our pet care division, while combining RaChelle’s expertise and Tenacious Labs’ high-quality manufacturing capabilities to significantly scale up Rover’s Wellness. We look forward to working with her closely over the coming months and years.”
Global sales of CBD petcare products are expected to reach $424.4m (£351.1m) by 2024, representing a compound annual growth rate of 18.6%, according to research by Prohibition Partners, a data analytics firm for the cannabinoid industry.
Baca-Lobre added: “We have enjoyed great success to date, and I believe that by harnessing Tenacious Labs’ best-in-class manufacturing facilities, marketing expertise, and operational support, we can unlock more exciting growth opportunities for Rover’s Wellness and the group’s broader petcare division.”
The latest deal follows the maiden acquisition in April 2021 of US-based female-focused wellness brand Press Pause and the follow-up takeover of contract manufacturer SZM in May 2021.
Tenacious, which also has offices in Denver and Miami, now employs 35 staff and is wholly owned by Delarki, a search fund aimed at early-stage businesses targeting Generation Y and Z audiences.
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