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Above Food has entered into a definitive purchase agreement to acquire The Redwood Group’s speciality crop food ingredients division for $34m, subject to final closing adjustments.
The Redwood Group’s crop food ingredients business, based in Montana, US, supplies grains, pulses and speciality crops to customers in over 35 countries across high-growth product categories in both the human and pet food markets. Its vertically integrated model spans from the farm to the consumer, encompassing origination, merchandising, processing and value-added finishing.
Canadian regenerative ingredients specialist Above Food will pay $8.1 million in cash, as well as 5.6 million newly issued common shares of Above Food.
Founder, president, CEO and executive chairman of Above Food, Lionel Kambeitz, said that The Redwood Group’s speciality crop ingredient division “operates in full harmony” with Above’s seed-to-fork approach, providing “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”.
Above’s seed-to-fork approach is central to the company’s strategic positioning. It allows it to maintain control over its supply chain while enforcing standards for quality, sustainability, safety and traceability and sustaining its commitment to regenerative agriculture practices.
Mike Kincaid, founder and president of The Redwood Group, said: “The sale of our Specialty Crop Food Ingredient Division represents a significant milestone in The Redwood Group’s growth. This is a bittersweet moment in our history, yet represents a tremendous opportunity for personal and professional growth for our teams in Mission, Kansas and Chester, Montana, to join an organisation principally focused on speciality crops and value-add opportunities in the region, as well as globally.”
Kincaid added: “Above Food is adding a well-led group of hardworking innovators, who I expect to continue flourishing and immediately improve utilisation and expand the margin structure of several of Above Food’s assets. We are grateful for our team of people who helped build this business and are thankful for the Above Food team’s thoughtful approach to this acquisition.”
This latest acquisition follows Above Food's purchase of Brotalia last month. Brotalia is a plant-based food and technology company specialising in 3D printing and dry fermentation technologies.