Above Food's Recent Montana-Based Asset Acquisition Expands Access to High-Growth Pet Food Market and Strengthens Chickpea Market Presence
Above Food Ingredients Inc. (Nasdaq: ABVE) has completed the acquisition of The Redwood Group's Montana-based specialty crop food ingredient division for US$34 million plus working capital. This strategic move expands Above Food's market share in high-growth sectors, particularly the US$26 billion plant-based pet food market, which accounted for about 40% (US$65M) of the acquired assets' fiscal 2023 revenue. The acquisition also strengthens Above Food's position in the US$15 billion global chickpea market.
The deal includes two processing facilities in Montana's 'Golden Triangle,' increasing Above Food's processing capacity by 56,000 metric tons. The company expects to improve utilization rates at its Saskatoon-based Ingredient Center, potentially leading to enhanced production capacity and improved gross margins. This acquisition aligns with Above Food's 'Seed-to-Fork' approach and is expected to generate long-term value for shareholders.
Above Food Ingredients Inc. (Nasdaq: ABVE) ha completato l'acquisizione della divisione di ingredienti alimentari specializzati del gruppo Redwood, con sede in Montana, per 34 milioni di dollari USA più il capitale circolante. Questa mossa strategica espande la quota di mercato di Above Food in settori ad alta crescita, in particolare nel mercato degli alimenti per animali domestici a base vegetale da 26 miliardi di dollari USA, che ha rappresentato circa il 40% (65 milioni di dollari USA) del fatturato degli attivi acquisiti nel 2023. L'acquisizione rafforza anche la posizione di Above Food nel mercato globale dei ceci da 15 miliardi di dollari USA.
Il contratto include due impianti di lavorazione nel 'Golden Triangle' del Montana, aumentando la capacità di lavorazione di Above Food di 56.000 tonnellate metriche. L'azienda si aspetta di migliorare i tassi di utilizzo presso il suo Ingredient Center di Saskatoon, portando potenzialmente a una maggiore capacità produttiva e a margini lordi migliorati. Questa acquisizione è in linea con l'approccio 'Seed-to-Fork' di Above Food e si prevede genererà valore a lungo termine per gli azionisti.
Above Food Ingredients Inc. (Nasdaq: ABVE) ha completado la adquisición de la división de ingredientes alimentarios especializados de The Redwood Group con sede en Montana por 34 millones de dólares estadounidenses más capital de trabajo. Este movimiento estratégico expande la participación de mercado de Above Food en sectores de alto crecimiento, particularmente en el mercado de alimentos para mascotas a base de plantas de 26 mil millones de dólares, que representó aproximadamente el 40% (65 millones de dólares) de los ingresos de los activos adquiridos en 2023. La adquisición también fortalece la posición de Above Food en el mercado global de garbanzos de 15 mil millones de dólares.
El acuerdo incluye dos instalaciones de procesamiento en el 'Golden Triangle' de Montana, aumentando la capacidad de procesamiento de Above Food en 56,000 toneladas métricas. La empresa espera mejorar las tasas de utilización en su Centro de Ingredientes en Saskatoon, lo que podría llevar a una mayor capacidad de producción y mejores márgenes brutos. Esta adquisición está alineada con el enfoque 'Seed-to-Fork' de Above Food y se espera que genere valor a largo plazo para los accionistas.
Above Food Ingredients Inc. (Nasdaq: ABVE)는 몬태나에 본사를 둔 Redwood Group의 전문 작물 식품 성분 부문을 3400만 달러 및 운영 자본에 인수했다고 발표했습니다. 이 전략적인 움직임은 Above Food의 시장 점유율을 고성장 분야로 확장하며, 특히 260억 달러 규모의 식물 기반 반려동물 사료 시장에서 차지하는 비중이 약 40% (6500만 달러)로, 인수된 자산의 2023 회계연도 수익에 기여하고 있습니다. 이번 인수는 또한 Above Food의 150억 달러 규모의 글로벌 병아리콩 시장 내 입지를 강화합니다.
이번 거래에는 몬태나의 '골든 트라이앵글'에 위치한 두 개의 가공 시설이 포함되어 있으며, Above Food의 가공 용량을 56,000 메트릭 톤 늘립니다. 회사는 Saskatoon에 위치한 성분 중심에서 활용률을 개선할 것으로 기대하고 있으며, 이는 잠재적으로 생산 능력을 강화하고 총 마진을 개선할 수 있습니다. 이 인수는 Above Food의 'Seed-to-Fork' 접근 방식과 일치하며, 주주들에게 장기적인 가치를 창출할 것으로 예상됩니다.
Above Food Ingredients Inc. (Nasdaq: ABVE) a finalisé l'acquisition de la division d'ingrédients alimentaires de culture spécialisée du Redwood Group, basée dans le Montana, pour 34 millions USD plus le fonds de roulement. Ce mouvement stratégique accroît la part de marché d'Above Food dans des secteurs à forte croissance, en particulier dans le marché des aliments pour animaux de compagnie à base de plantes de 26 milliards USD, qui représentait environ 40 % (65 millions USD) des revenus des actifs acquis pour l'exercice 2023. L'acquisition renforce également la position d'Above Food sur le marché mondial des pois chiches de 15 milliards USD.
L'accord comprend deux installations de transformation dans le 'Golden Triangle' du Montana, augmentant la capacité de transformation d'Above Food de 56 000 tonnes métaniques. L'entreprise s'attend à améliorer les taux d'utilisation de son Centre d'Ingrédients basé à Saskatoon, ce qui pourrait entraîner une augmentation de la capacité de production et une amélioration des marges brutes. Cette acquisition est en accord avec l'approche 'Seed-to-Fork' d'Above Food et devrait générer une valeur à long terme pour ses actionnaires.
Above Food Ingredients Inc. (Nasdaq: ABVE) hat die Übernahme der auf Montana basierenden Spezial-Crop-Lebensmittelzutaten-Division der Redwood Group für 34 Millionen US-Dollar zuzüglich Betriebskapital abgeschlossen. Dieser strategische Schritt erweitert den Marktanteil von Above Food in wachstumsstarken Bereichen, insbesondere im 26-Milliarden-Dollar-Markt für pflanzenbasierte Haustiernahrung, der etwa 40% (65 Millionen US-Dollar) der Einnahmen aus den erworbenen Vermögenswerten im Geschäftsjahr 2023 ausmachte. Die Übernahme stärkt auch die Position von Above Food im 15-Milliarden-Dollar globalen Kichererbsenmarkt.
Der Deal umfasst zwei Verarbeitungsanlagen im 'Goldenen Dreieck' von Montana und erhöht die Verarbeitungs Kapazität von Above Food um 56.000 metrische Tonnen. Das Unternehmen erwartet, die Auslastungsraten in seinem Ingredients Center in Saskatoon zu verbessern, was potenziell zu einer erhöhten Produktionskapazität und verbesserten Bruttomargen führen kann. Diese Akquisition steht im Einklang mit dem 'Seed-to-Fork'-Ansatz von Above Food und wird voraussichtlich langfristigen Wert für die Aktionäre schaffen.
- Acquisition of Montana-based assets for US$34 million plus working capital
- Expansion into US$26 billion plant-based pet food market, accounting for 40% of acquired assets' revenue
- Strengthened position in US$15 billion global chickpea market
- Addition of two processing facilities, increasing capacity by 56,000 metric tons
- Expected improvement in utilization rate of Saskatoon-based Ingredient Center
- Potential for enhanced production capacity and improved gross margins
- Diversification of revenue streams
- Significant capital outlay for acquisition (US$34 million plus working capital)
- Potential integration challenges with newly acquired assets
- Possible short-term impact on financials due to acquisition costs
Insights
The acquisition of The Redwood Group's Montana-based assets for
The acquisition also strengthens Above Food's position in the
This acquisition marks a significant shift in Above Food's market positioning. By entering the plant-based pet food sector, which accounted for
The strengthened position in the chickpea market is equally noteworthy. As North America's largest chickpea manufacturer, Above Food is well-positioned to capitalize on the growing demand for plant-based proteins in both human and pet food markets. The
The strategic location of the new facilities in Montana's "Golden Triangle" provides Above Food with a competitive advantage in sourcing high-quality pulses. This vertical integration aligns with consumer trends towards traceability and sustainability in food production, potentially enhancing brand value and market share.
The acquisition significantly enhances Above Food's supply chain capabilities. The addition of two processing facilities in Montana's prime pulse-growing region increases processing capacity by 56,000 metric tons and adds 72 silos for advanced ingredient separation and storage. This expansion not only boosts production capacity but also improves supply chain resilience and flexibility.
The expected improvement in facility utilization at the Saskatoon Ingredient Center is a key operational benefit. By increasing utilization rates, Above Food can achieve better economies of scale, potentially leading to lower per-unit production costs and improved gross margins. The enhanced cleaning, sorting and processing capabilities across facilities also enable greater product differentiation and quality control.
The direct rail access at the new facilities, combined with existing capabilities in Canada, optimizes logistics and distribution. This integrated network should result in more efficient inventory management, reduced waste and improved responsiveness to market demands, ultimately strengthening Above Food's competitive position in the plant-based ingredient market.
- Acquisition creates substantial commercial synergies with Above Food's Saskatoon-based Ingredient Center, providing for additional opportunities to improve utilization and expand margins
- Expands asset base with two additional ingredient processing and storage facilities in Montana
- Strengthens Above Food's position in high-growth markets such as the US
$26 billion plant-based pet food market, which accounted for approximately40% (US$65M ) of the acquired assets’ fiscal 2023 revenue - Enhances leadership in the US
$15 billion global chickpea market, capitalizing on growing demand for plant-based proteins, to include that of the pet food market
REGINA, Saskatchewan, Aug. 15, 2024 (GLOBE NEWSWIRE) -- Above Food Ingredients Inc. (Nasdaq: ABVE, ABVEW) (“Above Food” or the “Company”), an innovative food company leveraging its vertically integrated supply chain to deliver differentiated ingredients and consumer products, today announced its plans to expand its market share across high-growth sectors, strengthen its North American footprint, and optimize production capabilities in connection with its recent announcement to acquire The Redwood Group, LLC (“TRG”) a Montana-based specialty crop food ingredient division (the “Assets”). The acquisition, which was initially announced on August 9, 2024, was completed for consideration of US
“This acquisition represents a transformative step for Above Food, perfectly aligning with our ‘Seed-to-Fork’ approach and significantly enhances our capabilities across multiple dimensions,” said Lionel Kambeitz, Founder, President, Chief Executive Officer, and Executive Chairman of Above Food. “Beyond the scope of what we shared previously, we expect this acquisition to enable an improvement in the utilization rate of our Saskatoon-based Ingredient Center and generate improved margins through transitioning the Assets’ operations to our advanced facilities. Further, this transaction strengthens our exposure to high-growth customer segments, particularly in the pet food market, which accounted for approximately
Significant Expected Improvement in Facility Utilization with Existing Ingredient Center
The integration of the acquired business with Above Food's existing Ingredient Center in Saskatoon, Canada presents substantial opportunities for operational synergies and cost savings. The Company's specialty ingredient facilities in Saskatoon offer state-of-the-art cleaning, optical color sorting, polishing, milling and blending capabilities, increased capacity for value-added processing, enhanced quality control measures, and improved efficiency in logistics and distribution.
The acquisition is set to optimize Above Food's operational efficiency by increasing the utilization rate of its existing ingredient processing facility in Saskatoon. Notably, this improved utilization is expected to result in enhanced production capacity without significant capital expenditure, lower per-unit production costs leading to improved gross margins, greater flexibility in meeting varying customer demands, and optimized inventory management and reduced waste. The Company anticipates that these improvements will contribute to a more robust and agile supply chain, better positioning Above Food to respond to market fluctuations and evolving customer needs, while enhancing Above Food's ability to deliver high-quality, traceable products to its customers.
Bolsters Asset Base with High-Quality Montana-based Ingredient Processing Facilities
The Assets included in the previously announced transaction include two strategic processing facilities in Montana's "Golden Triangle," North America's premier pulse growing region. The addition of these facilities significantly increases the Company's processing capacity by a combined 56,000 metric tons. Beyond capacity, these modern assets offer advanced processing capabilities including air cleaning, color sorting, and dehulling. The facilities feature 72 additional silos for advanced ingredient separation and storage, and both have direct access to rail and offer railcar storage capacities, similar to the Company’s existing capabilities in Canada. The facilities’ strategic positioning in the heart of the U.S. pulse growing region enhances Above Food’s ability to serve high-margin human food end-markets while capitalizing on opportunities to grow the pulse crop acreage in surrounding areas.
Leadership in High-Growth Pet Food Market
The pet food segment represents a significant growth opportunity for Above Food. With the newly acquired division generating approximately US
The US
Chickpea Market Leadership
The Assets significantly bolster Above Food's position in the US
About Above Food
Above Food Ingredients Inc. (Nasdaq: ABVE, ABVEW) is a differentiated, regenerative ingredient company that celebrates delicious products made with real, nutritious, flavorful ingredients and delivered with transparency. Above Food’s vision is to create a healthier world — one seed, one field, and one bite at a time. With a robust chain of custody of plant proteins, enabled by scaled operations and infrastructure in primary agriculture and processing, and proprietary seed development capabilities that leverage the power of artificial intelligence-driven genomics, Above Food delivers nutritious foods to businesses and consumers with traceability and sustainability. Above Food’s consumer products and brands are available online and in leading grocers across Canada and the United States.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain “forward-looking information” within the meaning of the United States federal securities laws and applicable Canadian securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” future,” “opportunity,” “plan,” “may,” “should,” “will,” “could,” “will be,” will continue,” and similar expressions and include, without limitation, statements about the ability of or expectations regarding the future performance of our business and operations; expectations regarding revenues, expenses, gross profit, gross profit margin and anticipated cash needs; expectations regarding cash flow, liquidity and sources of funding, including the ability to raise additional capital; expectations regarding capital expenditures; expectations regarding Above Food's ability to execute its growth strategy; expectations regarding our ability to maintain and enhance our platform and synergistic portfolio of ingredients and consumer products; and expectations regarding our ability to differentiate ourselves from competitors.
Forward-looking statements are based on the current expectations of Above Food's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. There may be risks that Above Food presently does not know or that Above Food currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Above Food’s expectations, plans or forecasts of future events and views as of the date of this communication. Above Food anticipates that subsequent events and developments will cause Above Food’s assessments to change. However, while Above Food may elect to update these forward-looking statements in the future, Above Food specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Above Food’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. Nothing herein should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results in such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein.
Contacts
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FAQ
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