Above Food Ingredients Inc., a company that specializes in the development and distribution of differentiated ingredients and consumer products, has announced a definitive agreement to acquire the Specialty Crop Food Ingredient Division of The Redwood Group, LLC.
The acquisition, which is subject to final closing adjustments and customary closing conditions, will see Above Food pay $34 million in cash and 5.6 million newly issued common shares. The division, which is based in Montana, supplies high-quality grains, pulses, and specialty crops to customers in over 35 countries.
The division’s vertically integrated model, which spans from farm to consumer, enables it to achieve higher margins than traditional commodity suppliers. In the fiscal year ended December 31, 2023, the division generated unaudited revenue of $164 million and an average annual adjusted EBITDA of $5.3 million.
Lionel Kambeitz, CEO of Above Food, said that the acquisition represents a major milestone for the company and will strengthen its international footprint. “This acquisition will bring new capabilities to our company, including processing and storage assets, and will allow us to expand our market share in the high-growth pet food category,” he said.
Mike Kincaid, founder and President of TRG, expressed gratitude to his team for building the division and praised Above Food’s approach to the acquisition. “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,” he said.
The acquisition is expected to enhance Above Food’s Seed-to-Fork approach, which enables the company to maintain control over its entire supply chain and ensure that its standards for quality, sustainability, safety, and traceability are upheld.