- Plant-based food manufacturer Modern Meat (MEAT) is set to acquire a number of healthy food brands as part of its expansion into the US
- Through a non-binding letter of intent, the company will acquire a number of vegan brands from JDW Distributors, a wholesale distributor of gourmet food gift baskets which is based in the US state of California
- The brands include a vegan gluten free potato chips, and vegan gluten free flavoured candies, as well as the distribution rights related to the products.
- In exchange, Modern Meat will pay approximately C$597.30 across two tranches, with the second tranche depended on 12-month revenue targets
- Modern Meat (MEAT) is up 5.56 per cent and is trading at $3.80 per share
Plant-based food manufacturer Modern Meat (MEAT) is set to acquire two healthy food brands as part of its expansion into the US.
Through a non-binding letter of intent, the company will acquire a number of vegan brands from JDW Distributors, a wholesale distributor of gourmet food gift baskets which is based in the US state of California.
The brands include a vegan gluten free potato chips, and vegan gluten free flavoured candies, as well as the distribution rights related to the products. Modern Meat will pay approximately C$597.30 across two tranches, with the second tranche depended on 12-month revenue targets.
The brand acquisition comes after Modern Meat revealed its intension to move in the US market earlier this month.
Tara Haddad, CEO of Modern Meat, said the company is continuing to make great strides towards its growth strategy is seeing strong consumer demand for healthy vegan options.
“Modern Meat is a lifestyle brand encompassing more than just our core plant-based meat alternatives and we see tremendous potential to bring other premium vegan brands into the fold. We’ve identified business synergies with JDW which will allow us to accelerate our sales channels and propel the Company to new heights,” he said.
Menawhile, Campbell Becher, Head of Finance and Mergers and Acquisitions for Modern Meat, said the acquisition provides another catalyst towards long-term shareholder value creation.
“As we continue to scale by acquiring these brands from JDW, we take on a collection of vegan products that have had explosive growth and proven success in a short period of time.
“Adding our back end/finance capabilities we feel confident we can grow this platform significantly in the coming months. Furthermore, by adding its already robust distribution base throughout the US it gives us a great foothold into our future M&A and expansion plans,” he added.
Modern Meat (MEAT) is up 5.56 per cent and is trading at $3.80 per share at 11:35am EDT.
