Above Food has entered into a definitive purchase agreement to acquire the specialty plant food ingredients division of Redwood Group for $34 million, subject to final closing adjustments.
Redwood Group’s Crop Food Ingredients business, based in Montana, USA, supplies grains, pulses and specialty crops to customers in over 35 countries in high-growth product categories in both human and pet food. Its vertically integrated model extends from farm to fork and includes sourcing, marketing, processing and value-added finishing.
Canadian regenerative ingredients specialist Above Food will pay $8.1 million in cash and 5.6 million newly issued common shares of Above Food.
Lionel Kambeitz, founder, president, CEO and chairman of the board of directors of Above Food, said Redwood Group’s specialty plant ingredients division operates “in complete harmony” with Above’s seed-to-fork approach, offering “best-in-class processing and storage resources, supported by end-to-end quality assurance, product development and safety protocols, while maintaining strong relationships with growers, suppliers and customers.”
Above’s seed-to-fork approach is central to the company’s strategic positioning, allowing the company to maintain control of its supply chain while enforcing standards of quality, sustainability, safety and traceability and maintaining its commitment to regenerative agriculture practices.
Mike Kincaid, Founder and President of Redwood Group, said, “The sale of our specialty crops division represents a significant milestone in the growth of Redwood Group. This is a bittersweet moment in our history, but represents a tremendous opportunity for personal and professional growth for our teams in Mission, Kansas and Chester, Montana to join an organization primarily focused on specialty crops and value-added opportunities in the region and globally.”
Kincaid added, “Above Food gains a well-led group of hard-working innovators who I expect will continue to be successful and immediately improve the utilization and margin structure of several of Above Food’s assets. We are grateful to our team for helping us build this company and are thankful for the Above Food team’s thoughtful approach to this acquisition.”
This latest acquisition follows Above Food acquired Brotalia last month. Brotalia is a Plant-based food and technology company specializing in 3D printing and dry fermentation technologies.
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