Canada: GreenSpace Brands in deal for owner of Canadian juice Kiju

 

Canadian food manufacturer GreenSpace Brands has signed an agreement to acquire all outstanding shares in Nothing But Nature, the Ontario-based company that owns the Kiju brand and sells a range of organic juices and drinks throughout North America.

Nothing But Nature is a brand leader in the Canadian shelf-stable organic juice segment, GreenSpace said, and distributes a variety of organic juices through major consumer retail channels in Canada and the US.

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The deal is worth between $8.88 million and $9.88 million, comprising $6.22 million in cash, $2.66 million in common shares with each share issued at a price of $1.27, and an earn-out that can be up to $1 million based on the net revenue of Nothing But Nature in the 12 month period to the end of 2017.

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In the 12 months to the end of October, Nothing But Nature recorded gross revenue of approximately $8.4 million.

Matthew von Teichman, CEO of GreenSpace Brands, said: “This acquisition is a perfect example of the type of transaction we wish to do in the Canadian natural and organic food market. Kiju is one of the best known organic brands in Canada, with strong regional distribution and fantastic products. We believe our team, in particular our sales, marketing and operations groups will be able to have a strong impact on the Kiju business and will be able to assist in growing its revenues and improving its profitability margins.”

The takeover is expected to continue to strengthen GreenSpace’s relationship with distribution channel partners, offering opportunities for increased penetration in previously untapped channels. The short-term opportunities for growth are available through continued product line innovation and expansion, GreenSpace explained, while the deal is expected to be ‘immediately accretive’ to the company’s earnings and cash flow, with a number of potential synergies expected to be realised in GreenSpace’s future earnings.

Source: Foodbev

 

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