This Works has been acquired by investment firm Inspirit Capital in a deal valued at up to £9.3m.
The London-based firm has bought the British sleep and skin care brand from parent company Canopy Growth Corporation.
Canopy Growth has received an upfront cash payment of £2.7m and, in other consideration, a loan note issued by Inspirit Capital and a contingent earn-out.
This Works was founded in 2003 and is best known for its sleep-promoting pillow sprays.
"We are proud of the legacy that This Works has built as part of the Canopy Growth family,” said This Works CEO Anna Persaud.
“Through dedication to the creation of innovative products and formulations, we have deepened customer loyalty and expanded our global footprint.
“As we take this next step, we look forward to working with the leadership of Inspirit Capital to further the brand's growth and long term success.”
Will Stamp, Partner at Inspirit Capital, said the brand is well positioned to capitalise on the ongoing growth in sleep and wellness.
“Given the strong brand equity and their track record of product innovation,” he said.
Canopy Growth acquired This Works for £43m in May 2019.
The company has decided to sell the business so it can focus on its North American cannabis operations in a bid to achieve “market leadership”.
Canopy Growth CEO David Klein said: “This sale represents a further step to enable this through the transformation of Canopy Growth into a simplified, asset-light, cannabis-focused business.”
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