Matt Miles, founder of the hemp processing company General Processing announced this week that he has completed the sale of his company to the EcoGen BiosSciences division of Kadenwood, a privately held consumer products lifestyle company, focused on shaping CBD into a trusted and safe mainstream wellness category.
EcoGen BioSciences is the leading vertically-integrated manufacturer and supplier of hemp-derived specialty ingredients in North America. EcoGen is located in the Grand Junction area. Kadenwood is the largest supplier of hemp-based CBD.
Miles started the hemp processing company in 2018, to become the first major hemp handler in Western Colorado. The hemp industry has been in a state of flux for most of the company’s operational lifespan. Miles took no shortcuts in building a plant with state-of-the-art science and equipment. Miles once told this reporter that he was in the game to win. But the virtual crash of the hemp market, weather, and regulatory issues put everybody in the industry in a bind.
Miles alluded to a sale or a merger as being the only way forward during an early November conversation. The well-equipped and run General Processing operation turns out to be an attractive property.
Garrett Bain, President of EcoGen commented on the Kadenwood buy. “This acquisition not only expedites the process of garnering cGMP certification for our manufacturing capabilities, but allows us space to introduce our revolutionary new sustainable manufacturing processes, while expanding our capacity as we look ahead to 2021 and prepare for increasing demand,” he said.
Kadenwood is a Newport, California-based company. “Kadenwood, LLC, is a consumer seed-to-shelf CBD company, dedicated to fostering trust and transparency in the mainstream wellness category,” according to its description. The fast-growing organization acquired EcoGen Laboratories last August.
Miles said the deal with Kadenwood and EcoGen will put added value on his work and capital expended in establishing the facility.
The emerging, but still troubled, hemp sector could see plenty of this kind of activity.
“Like any business, the CBD business is consolidating. However, I don’t think anybody expected it to happen as fast as it has,” Miles said. He expressed confidence in Kadenwood, saying the company is at the head of the pack.
The General Processing plant is a 51,000-square-foot, facility located at B50 Road and US 50 in Delta County. The plant can process more than 10,000 pounds of biomass a day, which should produce about 1,000 pounds of CBD or CDC oil.
Last year, as the plant ramped up to full operation, Miles said he was in the venture for success.
“I am in this game to win. I get here at five in the morning and I go home at five in the evening. I enjoy what I am doing. I try to avoid mistakes, but at this stage it is impossible. So, I learn and I make adjustments and keep going,” he said.
One of the adjustments he made was cutting a deal with a larger company which can make better use of his established operation.