In Canada, food manufacturer GreenSpace Brands has acquired the owner of juice brand Cedar in a deal worth up to CAD 6.385 million ($5.05 million).
Cedar, under the ownership of Toronto-based The Cold Press Corporation, makes a variety of premium cold-pressed juices and probiotic-enriched drinks, which are sold through ‘major consumer retail channels’ in Canada.
In the three months to the end of July, the Cedar brand generated gross revenue of approximately CAD 1.25 million ($0.99 million), representing year-on-year growth of 200%. Within the current fiscal year, GreenSpace said, Cedar has been profitable
The sale price includes CAD 1 million ($790,000) in performance-related earn-outs, based on Cedar’s revenue in the 12 months commencing this September.
GreenSpace Brands CEO Matthew von Teichman said: “This acquisition highlights our strategy and ability to add innovative brands to our platform that can then have their growth amplified through synergistic opportunities within our current team. Cedar is leading the emerging cold-pressed juice category by stripping away the complexities of superfood nutrition and providing consumers with access to products that are simple, without sacrificing quality.”
GreenSpace expects to realise ‘near-term opportunities for growth’ with the deal. It is expected to be accretive to GreenSpace’s earnings, with continued improvement in margins anticipated going forward.
The move will extend the company’s business in juices, following the acquisition of Nothing But Nature, the Ontario-based company that owns the Kiju brand and sells a range of organic juices and drinks throughout North America.
Von Teichman continued: “Recent product expansion into hydration and probiotic focused juice products highlight the alignment with the GSB pursuit of the ‘gut health’ category, which we feel is increasingly important to Canadians. We believe our team will be able to take this successful brand and further its development with additional expertise across sales, marketing and operations.”
© FoodBev Media Ltd 2020
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