- Verma Farms, a Hawaii-based CBD company, has acquired Penguin, a hemp and CBD company based in New York.
- Both of the companies will collaborate to continue to expand their portfolio of products, which is designed to be marketed toward Generation Z consumers and other young CBD users.
- The acquisition is an all-cash deal, but the amount was not disclosed. The transition takes effect immediately.
Maui, Hawaii-based Verma Farms has acquired Penguin, a hemp company and CBD company in New York. Penguin is a well-known company among young CBD users, and a lot of their marketing efforts are directed toward Generation Z and young Millenials.
Penguin was founded at the end of 2019 by Deep Patel, a 22-year-old entrepreneur, marketer, and author. Just before the COVID-19 pandemic began to result in shutdowns, Penguin had been undergoing a boom of sales. This caught the attention of AJ Agrawal, CEO and founder of Verma Farms, which also started in 2019.
“We’re ecstatic to join up with Verma Farms, which shares this vision in making sure everyone who buys a CBD product knows exactly what goes into it, therefore knowing exactly what’s going into their bodies,” Patel said in a statement during the acquisition announcement.
Both of the companies are known for being socially-conscious, and together the teams will be combining their products under the Verma Farms brand name. They will also continue their marketing of high-quality CBD products to Generation Z hemp users.
Both companies make their CBD products using hemp produced in Hawaii and Oregon. Together, their focus is on sustainability and transparency to guarantee that CBD consumers only receive the highest-quality products with proper labeling.
“As a brand, one of our core focuses has been to ensure transparency for our consumers,” Patel said.
Verma Farms uses third-party lab testing and is able to provide a certificate of analysis for all of their products; an essential addition with the lack of FDA regulation for CBD products.
The acquisition is an all-cash deal. The total amount has not been made public, but the transition takes effect immediately.
“The past two years have been an incredible journey for myself and my business,” Patel said.
“The hemp industry as a whole has seen monumental changes in such a short time, and every business owner in this space has had to stay on their toes. But together with Verma Farms, we’re stronger than ever. I’m so excited to see how we can continue to innovate and disrupt a crowded industry, see more profit and growth, and help our consumers lead healthier, happier lives.”