Entertainment mogul Sean "Diddy" Combs inked a deal to buy cannabis producing, distributing and retail assets in three states for $185M from Cresco Labs.

The transaction will create a major Black-owned multistate cannabis operation. The vertically integrated assets include facilities for growing, distributing and selling cannabis at the retail level in New York, Illinois and Massachusetts, all of which are states in which recreational use is legal.

As yet, however, cannabis cannot be transported across state lines legally because of federal prohibition, so the assets are vertically integrated in each state only.

“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access," Combs said in a statement.

"Owning the entire process — from growing and manufacturing to marketing, retail and wholesale distribution — is a historic win."

Historically, Black people have been disproportionately arrested and incarcerated for marijuana crimes.

The divestiture of the assets is required for Illinois-based Cresco to close its previously announced $2B acquisition of New York-based Columbia Care. The deal with Combs is expected to close concurrently with the Columbia Care acquisition, likely in the first quarter of 2023.

Cresco and Columbia Care are in the process of divesting other assets to meet regulatory requirements.