Real Brands, Inc. (OTC: RLBD) has acquired Boulder Botanical & Biosciences Laboratories, Inc. (Boulder Botanical) in a stock-and-cash deal valued at $12 million with a $1 million operating capital commitment. It intensifies RLBD’s interest in the herbal supplement, sports medicine and CBD manufacturing and distribution business that provides white-label and private label products to many of the nation’s largest retail chains.
Thom Kidrin, CEO and Chairman of RLBD, says the takeover “Is a perfect fit,” for RLBD and provides for world class R&D, a 300% increase in manufacturing capacity, 150 different brands and nutritional supplements plus a former GE-owned, multi-million dollar manufacturing facility complete with sterile production rooms.
The facility was previously owned by General Electric (GE) and used to manufacture medical devices such as pacemakers. The facility’s infrastructure and construction with Good Manufacturing Practice (GMP) regulations in mind, its safety features, vacuum-sealed rooms, commercial kitchens, and clean rooms are all ideal for producing nutraceutical-grade CBD and herbal supplement products in compliance with certified standards used in the nutraceutical and pharmaceutical industries.The production facility is capable of large volume production and scaling, the Company says.
Kidrin Sets Future Post-Acquisition Plans
Kidrin says, “The deal is done and next month we will finalize all paperwork as a formality. All due diligence is done.” The acquisition was made from Frankens Investment Fund, LLC, which had acquired Boulder Botanical in April 2022. Real Brands has contracted to retain key Boulder Botanical employees for a seamless transition, with no interruption in supply to customers.
The acquisition will include Boulder Botanical’s brands for human and pet markets, IP, and distribution at the 27,000 sq. ft. R&D and production facility in Golden, Colorado. The value of the transaction is $12 million, with a $1 million operating capital commitment. Boulder Botanical will retain its name and operate as a division of Real Brands.
“With this acquisition, we have increased our production capacity by 300%, 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 market,” he says.
Kidrin added, “We expect to build upon that solid foundation. 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.”
More White Label Ahead?
Post-transaction, Kidrin discussed more future plans for RLBD.
- Non-alcoholic beer is a priority for RLBD in the future, he says, as it is becoming popular with adults who wish to drink socially without an alcoholic beverage.
- Resumption of White Label manufacturing for brands such as Martha Stewart. Temporarily, that had been interrupted during the sale — he is eager for RLBD to resume, and says negotiations with major labels are continuing.
- Negotiations are ongoing for an Asian license with a pharmaceutical company based in Thailand.
- David Frankens, owner of Frankens Investments, says, “We are maintaining a position as strategic equity shareholders in 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.”
US Herbal Supplements Seen As $4.1 Billion Market By 2027
“Boulder Botanical is a gem and one of the hidden cornerstones of the health and wellness herbal supplement and CBD industry that has been providing white-label products manufactured to the highest standards to major retailer chains,” noted Frankens.
The U.S. Herbal Supplements Market size was estimated at $2.2 billion in 2021, $2.6 billion in 2022, and is projected to grow at a Compound Annual Growth Rate (CAGR) of 10.62% to reach $4.1 billion by 2027, as forecast by ResearchandMarkets.com. ResearchandMarkets.com’s July 8, 2022 report anticipates the global herbal supplements market will grow from $32.1 billion in 2021 to $49.1 billion by 2027, exhibiting a CAGR of 7.34% during 2021-2027
Research firm Global Market Insights reports that the Global CBD market in 2021 was $12.8 billion (US portion was $7.7 billion) and is expected to grow at a CAGR of 21.7% to $56.2 Billion by 2028 due primarily to “rising awareness of health benefits of CBD and its effectiveness in pain management and various other treatments.”
Turning Point Brands, Inc. (NYSE: TPB), is also a long-time strategic investor in Real Brands — owning 23% of the Company, Kidrin says. Turning Point Brands is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients.
CONCLUSION
With its aggressive post-transaction plans, RLBD is setting in motion a large uptick in its production plans, acquisition of brands acquisition of the former GE production facility, licensed expansion into Asia (Thailand) and a resumption of its White Label manufacturing for brands such as Martha Stewart. RLBD under Kidrin’s leadership is a positive — as is Franken’s ongoing future equity position. The fact that Turning Point Brands (NYSE: TPB) holds a 23% equity position in RLBD is also a positive for investors. Keep it on your watch list. Next goal: a possible up listing to the NASDAQ exchange.
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