The deal gives Canopy Growth a 72 per cent stake in BioSteel with a path to full ownership.
Financial terms of the all-cash agreement were not immediately available.
With the acquisition, Canopy Growth gains an entry into the sports nutrition and hydration business.
Founded in 2009, BioSteel is best known for its pink sports drink that is used by professional athletes.
The company also has partnerships with USA Hockey, Canada Basketball, Athletics Canada and the Professional Hockey Players Association.
“This acquisition allows us to enter the sports nutrition space with a strong and growing brand as we continue towards a regulated market of food and beverage products that contain cannabis,” Canopy chief executive Mark Zekulin said in a statement.
“We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business.”
This report by The Canadian Press was first published Oct. 2, 2019
Companies in this story: (TSX:WEED)
The Canadian Press