This transaction is likely to reduce cbdMD’s revenue concentration in the hemp category and lessen risks related to the evolving regulatory environment for hemp-derived products, according to a statement by the company.
The deal was worth roughly $4 million.
The company statement suggested that the combined unaudited trailing twelve months of revenue ending June 2026 totals about $30 million, which represents an increase of approximately 40% relative to cbdMD’s standalone revenue for the same period.
Twinlab was founded in 1968 and is a well-known name in legacy supplements and sports nutrition space and has served 50,000 retail outlets such as The Vitamin Shoppe, GNC and has a prominent presence on Amazon selling vitamins, minerals, active lifestyle, beauty and performance nutrition.
The portfolio will expand cbdMD’s reach into a customer base seeking daily wellness, active lifestyle, weight management, longevity, recovery, beauty and functional supplementation. cbdMD said that among Twinlab brands, Reserveage offers premium longevity, resveratrol, collagen and beauty-from-within positioning while the Metabolife will bring established weight management brand recognition products.
“Twinlab is the kind of brand equity that companies spend decades trying to build,” said Ronan Kennedy, CEO of cbdMD. “The brands, distribution channels, and team are highly complementary to what we already operate, and this transaction gives these brands the stability and support they need for their next chapter.”
Tales of recovery
Twinlab faced several financial challenges in the early 2000s, including filing for Chapter 11 bankruptcy protection after an onslaught of personal injury lawsuits tied to the company’s sale of ephedra-containing products.
As part of its bankruptcy proceedings, Twinlab’s sold assets to IdeaSphere Inc. for approximately $65 million in cash plus assumed liabilities.
The brand persisted through the financial firestorm and by 2010 it posted double-digit sales growth.
By 2011, Tom Tolworthy, the company’s then-CEO, began implementing significant changes.
It was reported that Tolworthy rebuilt Twinlab to become a “powerhouse” with significant operational strength, including expanding to retail locations in 55 countries and creating a sizeable product mix. By 2014, Twinlab had raised $130 million in financing to underpin a planned management buyout of the company.
However, the financial burden of that Twinlab deal was “weighing the company down,” said Anthony Zolezzi, CEO, Twinlab.
Even though Twinlab was financially above water, the company used much of its resources to pay interest that could have been used to support business needs like product marketing.
At one point, Twinlab even considered selling full spectrum CBD products to increase profits and meet customer requests, but the company paused on CBD-related innovation until it could get clarification from the Food and Drug Administration.
“Anytime you pile on debt, it usually doesn’t end well,” Zolezzi said. “As much as Twinlab was pressured, the company stayed alive and grew but relieving this debt with cbdMD makes it now something spectacular.”
cbdMD also had financial challenges of its own. Two years ago, lackluster earnings reports showed gross profit flat, operational losses and net sales down. However, as of last month, revenue is up 12% and net sales grew 20% year over year, some of that partly attributable to the cbdMD’s acquisition of Bluebird Botanicals, offering CBD products including oils, relaxation and sleep gummies.
cbdMD also launched Herbal Oasis Social Tonics, a low-calorie, hemp-derived THC seltzer line with a blend of premium cannabinoids and adaptogenic mushrooms.
“We’ve been able to stabilize our core business with the THC beverage line starting to take off,” Kennedy said. “It’s been a multi-pronged approach. In addition, we’ve had very supportive investors to boost our balance sheet in capital.”
He explained that cbdMD’s experience in creating supplements that address sleep and anxiety rounds out the Twinlab portfolio.
“We have a great opportunity to create a unique portfolio, including natural plants and looking at other botanicals,” Kennedy said. “It adds to the traditional portfolio Twinlab offers and caters to the expanding needs of customers interested in health and wellness.”
He added that the deal will deliver value proposition, enhance retail partnership and offer direct consumer relationship. It fills a gap for cbdMD, which can now further brand awareness.
Zolezzi, who will stay on with Twinlab, said the deal promotes “just a big vision.”
