US based Indoor farming company Local Bounti has announced that it is acquiring the rival indoor farming company Hollandia Produce Group for $122.5 million.
According to sources, the acquisition of Hollandia, which sells its products under the Pete’s brand name, may offer financial stability to Local Bounti as the Hollandia’s revenue totaled $22.7 million in 2021 with the gross margins reaching 45%, whereas Local Bounti reported sales of $638,000 in 2021.
The customer base of Hollandia’s Pete’s includes large retail chains, which means that after this investment, Local Bounti would be able to expand its retail distribution reach by around 20-fold.
Local Bounti’s co-CEO said: “This synergistic acquisition is a unique opportunity to combine a highly complementary and profitable CEA market leader in Pete’s with Local Bounti’s technological solutions to significantly accelerate market access for our superior produce varieties and create one of the largest CEA companies in the United States”.
The purchase is expected to close in Q2 2022.
Source: Food Dive