Above Food to acquire specialty-crop food ingredient business for US$34M

Above Food Ingredients Inc. announced plans to buy the Montana-based Specialty Crop Food Ingredient Division (Assets) of The Redwood Group (TRG) for US$34 million plus working capital, subject to final closing adjustments.

Upon the terms and subject to the conditions set forth in the purchase agreement, the consideration payable by the company in exchange for the Assets will consist of US$8.1 million in cash and 5.6 million newly issued common shares of Above Food, subject to final closing adjustments and customary closing conditions.

Based in Regina, Sask., the Canadian regenerative ingredients company said that the acquisition will add grains, pulses, and specialty crops to customers in over 35 countries in both the human and pet food markets. Last year, the Assets reportedly generated revenue of US$164 million.

Above Food also noted that TRG’s Specialty Crop Food Ingredient division’s vertically integrated model spans from the farm to the consumer, including origination, merchandising, processing, and value-added finishing.

“This acquisition marks a major milestone for Above Food and strengthens our international footprint as our first U.S. physical facilities while also significantly growing our market share of the high-growth pet food category,” said Lionel Kambeitz, Founder, President, Chief Executive Officer, and Executive Chairman of Above Food.

“TRG’s Specialty Crop Food Ingredient division operates in full harmony with our ‘Seed-to-Fork’ approach, providing us with top-tier processing and storage assets supported by end-to-end quality assurance, product development and safety protocols, while bringing strong relationships with growers, suppliers, and customers. It is a complete business with origination partners that are similarly utilizing sustainable farming practices that are consistent with our Canadian growers, which establishes broader reach across North America that we can leverage for the benefit of our shareholders.”