Real Brands Inc. (OTCQB: RLBD) has now expanded its production capacity through the acquisition of a Colorado-based herbal supplement and CBD product manufacturer.
On Tuesday, the company announced that it had acquired all assets from Boulder Botanical & Biosciences Laboratories Inc.
The acquisition will provide Real Brands with Boulder Botanical’s intellectual property, 27,000 square foot R&D and production complex and various brands for human and pet markets.
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Real Brands says that the transaction will be valued at US$12 million with a US$1 million operating capital commitment and that Boulder Botanical will maintain its name and function as a division of the company post-acquisition.
“Boulder Botanical’s existing national distribution network serving CVS, Target, Costco, and other retailers, combined with Real Brands’ expertise in online sales and the metaverse, enables ready access to millions of existing customers and millions more potential customers online and in person,” said Thom Kidrin, CEO and president of Real Brands.
“With this acquisition, we have increased our production capacity by 300 per cent, have added a portfolio of 150+ brands, extensive IP, and a skilled R&D team to create hundreds more products to meet the demand of the burgeoning herbal supplement and CBD markets.”
With that being said, Real Brands cites that according to Research and Markets the U.S. herbal supplements market was valued at US$2.6 billion this year and is expected to ascend to US$4.1 billion by 2027 with a compound annual growth rate (CAGR) of 10.62 per cent.
The company also cites that according to Global Market Insights, the international CBD market was valued at US$12.8 billion in 2021 and is anticipated to be worth US$56.2 billion by 2028 with a CAGR of 21.7 per cent during that forecast period.
Rising consumer awareness about the health benefits CBD can offer is driving that aforementioned market growth and these statistics provide insight into Real Brands’ decision to acquire Boulder Botanical.
“We jumped at the opportunity to acquire Boulder when it became available because we knew that under the right leadership, the sky would be the limit. We are maintaining a position as strategic equity shareholders in Real Brands,” said David Frankens, owner of Franken Investments — the company that owned Boulder Botanical prior to its acquisition by Real Brands.
“With this acquisition, we believe Real Brands under Thom Kidrin’s leadership, has the capability to capture a dominant position within the CBD industry and be a significant supplier in the health and wellness herbal supplements industry.”
Notable assets of Boulder Botanicals include production lines with over 150 proprietary formulations of topicals, supplements, tablets, ointments and drink powders along with in-house brands such as APRA extracts.
