Lord Jones CEO Departs Less Than A Year After $300 Million Acquisition By Cronos
Cronos acquired Lord Jones last year for $300 million
Less than a year after the big tobacco-backed Cronos Group closed its $300 million acquisition of the Calif.-based cannabidiol brand Lord Jones, the CEO of that business has departed.
Cronos disclosed the departure of the CBD company CEO and co-founder, Robert Rosenheck, in a Securities and Exchange Commission filing Monday. Cronos shares retreated 1.8% during the regular session Monday, amid declines across much of the sector’s largest names.
Cronos has appointed Summer Frein to general manager of its U.S. operations, which includes Lord Jones. Frein joined Cronos this year and was previously Vice President, U.S. Head of Sales at Lord Jones. “Her appointment is a positive change for the Company and we believe will accelerate growth for our hemp-derived CBD business,” a company spokesperson told Barron’s in an email.
Cronos acquired Lord Jones last year for $300 million—$225 million in cash, and the remainder in stock—or roughly 75 to 150 times the Lord Jones’ 2018 revenue. The CBD company was founded in 2017 by Rosenheck and his spouse Cindy Capobianco. It wasn’t immediately clear whether Capobianco would remain at Cronos.
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