Inspirit Capital acquires This Works

British sleep and skincare brand This Works has been acquired by investment firm Inspirit Capital from Canopy Growth Corporation. 

Founded in 2003, This Works was launched by former Vogue UK Beauty Director Kathy Phillips to address the impact of modern life on skin and wellbeing.

The UK-based brand is known for its range of science-backed and clinically-proven products, including its bestselling Deep Sleep Pillow Spray.

The new deal is valued at up to £9.3 million, with Canopy Growth receiving an upfront payment of £2.7 million in cash and in other consideration, a loan note issued by Inspirit Capital and a contingent earn-out.

It follows the previous acquisition of This Works by Canopy Growth for £43 million in May 2019.

Anna Persaud, CEO at This Works, said: "Over the last few years, This Works has continued to develop exciting new products and formulations that our customers love, alongside growing our presence internationally.

"We are proud that our offering truly resonates with consumers seeking skincare and wellness products that are backed by science, and proven to work. We are confident that, with the support of Inspirit, This Works’s brand story will keep going from strength to strength."

Inspirit Capital is a London-based investment firm that specialises in acquiring businesses that are no longer core to their parent company’s strategic objectives and require a different ownership structure to achieve their full potential.

Will Stamp, Partner at Inspirit Capital, said: "We are excited to invest in This Works and support the team pursue their ambition for the business.

"They are well positioned to capitalise on the ongoing growth in consumer interest in sleep and wellness, given the strong brand equity and their track record of product innovation. This deal also further underlines Inspirit’s status as a trusted partner for delivering divestments from corporate vendors."

David Klein, CEO of Canopy Growth Corporation, added: "We are resolutely focused on achieving North American cannabis market leadership, and this completed sale represents a further step to enable this through the transformation of Canopy Growth into a simplified, asset-light, cannabis focused business.

"We're pleased to have found a buyer that is committed to the continued development of the This Works brand."