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May 22 (Reuters) - Canopy Growth Corp said on Wednesday it would buy skincare company This Works for C$73.8 million ($55.2 million), adding beauty and sleep products to the Canadian weed producer's portfolio of cannabis oil, hemp and medical capsules.
London-based This Works, set up in 2003 by a former beauty director of Vogue UK and yoga teacher, makes pillow sprays that help users sleep faster, moisturizers to reduce wrinkles, body oils and eye-care products, according to its website.
Canopy Growth said the acquisition fits with its strategy of expanding internationally and would help develop CBD-infused products and brands for the global beauty and wellness space.
The Canadian company said in February lifestyle guru Martha Stewart would join as an adviser to help develop and launch a line of pot-based products for humans and animals.
Cannabis, primarily CBD - the cannabis derivative reputed to ease anxiety and other ills without marijuana's high, is being increasingly used in the wellness and beauty business, with companies tapping its properties to offer relief from pain, alongside its anti-inflammatory and anti-acne properties.
LVMH's Sephora beauty chain has been selling CBD-infused products since 2018, while ULTA Beauty Inc has Hempz branded product and more recently launched CBD-labeled products.
Jefferies expects the CBD beauty market to reach $25 billion in 10 years, accounting for 10%-15% of global skincare sales.
Some Hollywood celebrities, including Jennifer Aniston, Mandy Moore and Olivia Wilde, have also backed CBD-infused products in media interviews. (Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj Kalluvila)