Canadian food manufacturer GreenSpace Brands has sold its Kiju organic juice and iced tea brand to Zurban Beverages for $8 million.
The acquisition is for a cash consideration of $7.5 million and a revenue-based earn-out of $500,000. The Kiju business represents approximately 10% of the revenue of GreenSpace.
In 2016, GreenSpace acquired all outstanding shares in Nothing But Nature, the Ontario-based company that owned Kiju.
“We’re thrilled to be selling the Kiju brand to Zurban, and we’re very proud of how we’ve strengthened and developed the Kiju brand over the last few years, particularly as it relates to the launch of Kiju Fit,” said Matthew von Teichman, CEO of GreenSpace Brands.
“This transaction is significant for many reasons, not the least of which is that we feel it establishes a value for the rest of the brands in our portfolio of at least 1x sales, it helps to pay down some debt and it gives us some much-needed additional working capital. The sale of Kiju, although bittersweet for us, is an important milestone in our evolution as a company.”
Headquartered in Toronto, GreenSpace also owns brands such as Central Roast, Go Veggie, Life Choices and Cedar.
Earlier this year, the firm offloaded its Rolling Meadow Dairy brand to a subsidiary of Canadian company Agrifoods International Cooperative.
© FoodBev Media Ltd 2019