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Innovative Food Holdings, Inc. Announces Acquisition of Assets of Golden Organics, a Denver-Based Specialty Distributor

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Innovative Food Holdings, Inc. (OTCQB: IVFH) has announced the acquisition of Golden Organics, a Denver-based specialty distributor, for $1.75 million. The deal includes $1.4 million in cash and a $350,000 5-year seller's note. Golden Organics, founded in 1994, specializes in organic dry-good specialty food products in the Rocky Mountain region. The company has shown impressive growth with a 22% CAGR since 2018 and $6.8 million in trailing-twelve-month revenue.

The acquisition brings significant benefits to IVFH, including:

  • Over 200 new customers across the U.S.
  • 800+ new organic products
  • International sourcing expertise
  • Cost advantages on overlapping products
IVFH plans to integrate Golden Organics' products into its existing sales channels and implement synergies in back-office functions. Taeshaud Jackson has been appointed as the new President of Golden Organics to lead the integration and growth efforts.

Innovative Food Holdings, Inc. (OTCQB: IVFH) ha annunciato l'acquisizione di Golden Organics, un distributore specializzato con sede a Denver, per un valore di $1,75 milioni. L'accordo include $1,4 milioni in contante e un promissory note di $350.000 di 5 anni. Golden Organics, fondata nel 1994, si specializza in prodotti alimentari biologici secchi nella regione delle Rocky Mountains. L'azienda ha mostrato una crescita impressionante con un CAGR del 22% dal 2018 e $6,8 milioni di fatturato negli ultimi dodici mesi.

L'acquisizione porta significativi benefici a IVFH, tra cui:

  • Oltre 200 nuovi clienti negli Stati Uniti.
  • 800+ nuovi prodotti biologici
  • Esperienza nell'approvvigionamento internazionale
  • Vantaggi sui costi per i prodotti sovrapposti
IVFH prevede di integrare i prodotti di Golden Organics nei propri canali di vendita esistenti e di implementare sinergie nelle funzioni di back-office. Taeshaud Jackson è stato nominato nuovo Presidente di Golden Organics per guidare l'integrazione e gli sforzi di crescita.

Innovative Food Holdings, Inc. (OTCQB: IVFH) ha anunciado la adquisición de Golden Organics, un distribuidor especializado con sede en Denver, por un valor de $1.75 millones. El acuerdo incluye $1.4 millones en efectivo y un pagaré de vendedor de $350,000 a 5 años. Golden Organics, fundada en 1994, se especializa en productos alimenticios secos orgánicos en la región de las Montañas Rocosas. La compañía ha mostrado un crecimiento impresionante con un CAGR del 22% desde 2018 y $6.8 millones en ingresos de los últimos doce meses.

La adquisición trae beneficios significativos para IVFH, incluyendo:

  • Más de 200 nuevos clientes en EE. UU.
  • 800+ nuevos productos orgánicos
  • Experiencia en adquisiciones internacionales
  • Ventajas de costos en productos superpuestos
IVFH planea integrar los productos de Golden Organics en sus canales de venta existentes e implementar sinergias en las funciones administrativas. Taeshaud Jackson ha sido nombrado nuevo Presidente de Golden Organics para liderar la integración y los esfuerzos de crecimiento.

Innovative Food Holdings, Inc. (OTCQB: IVFH)는 덴버에 본사를 둔 전문 유통업체인 Golden Organics$1.75 백만 인수를 발표했습니다. 이 거래에는 140만 달러의 현금과 35만 달러의 5년 판매자 노트가 포함됩니다. 1994년에 설립된 Golden Organics는 록키 산맥 지역에서 유기농 건조 식품 제품을 전문으로 합니다. 회사는 2018년 이후 22% CAGR로 인상적인 성장을 보여주었으며, 최근 12개월 동안 수익은 680만 달러에 달합니다.

이번 인수로 IVFH는 다음과 같은 큰 혜택을 누리게 됩니다:

  • 미국 전역에서 200명 이상의 신규 고객
  • 800개 이상의 신규 유기농 제품
  • 국제 조달 전문성
  • 겹치는 제품에 대한 비용 절감 효과
IVFH는 Golden Organics의 제품을 기존 판매 채널에 통합하고 백오피스 기능에서 시너지를 구현할 계획입니다. Taeshaud Jackson이 Golden Organics의 새로운 사장으로 임명되어 통합 및 성장 노력을 이끌게 됩니다.

Innovative Food Holdings, Inc. (OTCQB: IVFH) a annoncé l'acquisition de Golden Organics, un distributeur spécialisé basé à Denver, pour un montant de 1,75 million USD. L'accord comprend 1,4 million USD en espèces et un billet vendeur de 350 000 USD sur 5 ans. Fondée en 1994, Golden Organics se spécialise dans les produits alimentaires biologiques secs dans la région des Rocheuses. L'entreprise a montré une croissance impressionnante avec un TCA de 22 % depuis 2018 et 6,8 millions USD de revenus sur les douze derniers mois.

L'acquisition apporte des avantages significatifs à IVFH, notamment :

  • Plus de 200 nouveaux clients aux États-Unis.
  • 800+ nouveaux produits biologiques
  • Expertise en approvisionnement international
  • Avantages de coûts sur les produits en doublon
IVFH prévoit d'intégrer les produits de Golden Organics dans ses canaux de vente existants et de mettre en œuvre des synergies dans les fonctions administratives. Taeshaud Jackson a été nommé nouveau président de Golden Organics pour diriger les efforts d'intégration et de croissance.

Innovative Food Holdings, Inc. (OTCQB: IVFH) hat die Übernahme von Golden Organics, einem auf Spezialitätenvertrieb in Denver ansässigen Unternehmen, für 1,75 Millionen USD angekündigt. Der Deal umfasst 1,4 Millionen USD in bar und eine 350.000 USD 5-Jahres-Verkäuferanleihe. Golden Organics, gegründet 1994, ist auf biologische Trockenlebensmittelprodukte in der Rocky-Mountain-Region spezialisiert. Das Unternehmen hat seit 2018 ein CAGR von 22% mit einem Umsatz von 6,8 Millionen USD in den letzten zwölf Monaten gezeigt.

Die Übernahme bringt bedeutende Vorteile für IVFH, einschließlich:

  • Über 200 neue Kunden in den USA.
  • 800+ neue biologische Produkte
  • Internationale Beschaffungsexpertise
  • Kostenvorteile bei sich überschneidenden Produkten
IVFH plant, die Produkte von Golden Organics in seine bestehenden Vertriebskanäle zu integrieren und Synergien in den Backoffice-Funktionen umzusetzen. Taeshaud Jackson wurde zum neuen Präsidenten von Golden Organics ernannt, um die Integrations- und Wachstumsbemühungen zu leiten.

Positive
  • Acquisition of Golden Organics for $1.75 million, expanding IVFH's market presence
  • Golden Organics has shown 22% CAGR since 2018 with $6.8 million in trailing-twelve-month revenue
  • Addition of over 200 new customers and 800+ organic products to IVFH's portfolio
  • Potential cost savings with Golden Organics' products being approximately 40% cheaper on overlapping items
  • Expected synergies through cross-listing products and integrating back-office functions
  • Appointment of experienced leader Taeshaud Jackson as new President of Golden Organics
Negative
  • Transaction-related costs of approximately $75,000 to be incurred by IVFH

BONITA SPRINGS, Fla., Oct. 18, 2024 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH” or the “Company”), a national seller of gourmet specialty foods to professional chefs, is pleased to announce the entry into a material definitive agreement to acquire 100% of the assets of Golden Organics, LLC, based in Denver, CO (“Golden Organics”), for total consideration of $1.75 million, consisting of $1.4 million in cash and $350,000 in the form of a 5-year seller’s note bearing interest at a rate of 6%.

Golden Organics was founded by David Rickard in Golden, CO in 1994, as a specialty food distribution company focused on being the premier organic food distributor of predominantly dry-good specialty food products in the Rocky Mountain region of the United States. Over 85% of its products are certified organic, and many of its products also have Gluten Free, Kosher, Halal, and Non-GMO certifications. Its true roots go back to Mr. Rickard’s impressive family history in the food distribution space dating back to his grandfather’s founding of J. Rickard and Sons, in Manchester, U.K. in 1872.

Included in the purchase price is approximately $1.4 million in inventory and approximately $100,000 of PP&E. The business operates out of an approximately 22,000 square feet leased warehouse in the Denver area. The stated purchase price represents a multiple of 2024 expected unadjusted EBITDA in line with the Company’s previously stated target range of 3-5 times. Golden Organics has generated $6.8 million in trailing-twelve-month revenue, and has grown at a CAGR of 22% since 2018 without the benefit of a dedicated sales staff or direct marketing efforts. Further, it has generated positive unadjusted net income in every year over that same period.

Golden Organics brings a significant incremental customer base and sourcing capabilities to our organization. It has built a base of over 200 customers spanning across the United States, but primarily located in the greater Denver market. Its customers fall into three roughly equivalent buckets: restaurants, food manufacturers, and food retailers. No individual customer currently accounts for more than 8% of total sales. On the product side, Golden Organics brings more than 800 incremental organic items to IVFH’s assortment. This assortment is enabled by deep international sourcing experience and supplier relationships, allowing it to buy unique organic products in quantities that allow for meaningful cost advantages. For example, on the few overlapping organic products that IVFH already carries, Golden Organics’ cost of goods is approximately 40% cheaper. Golden Organics’ incremental customer base, sourcing capabilities, and large product assortment expansion all increase the long-term organic growth opportunities for IVFH to profitably capitalize on.

As IVFH integrates Golden Organics, bi-directional synergies should further improve the deal’s economics and will be a key focus post-closing. The Company expects to cross-list Golden Organics’ products on its other sales channels, including its drop ship business with large foodservice distributors, and its owned sales channels like Amazon. This strategy has been a key growth driver for IVFH’s Artisan Specialty Foods entity, acquired over a decade ago, leading to approximately half of its sales currently coming from the drop shipping of products. Golden Organics will also have the opportunity to cross-sell IVFH’s broader specialty products portfolio to its local base of customers. Lastly, the Company expects to implement synergies with key back office functions, implement a single ERP system, and integrate a single warehouse management system to drive further efficiencies and growth opportunities.

IVFH has brought on Taeshaud Jackson to serve as the new President of the Golden Organics business. Mr. Jackson is a Denver, CO native with extensive experience in food distribution, warehouse management, and business management. He has previously worked in various managerial roles for U.S. Foods, Americold, DHL, Kroger, and Wal-Mart. Mr. Jackson has already been working for IVFH for the past few months in anticipation of taking the helm at Golden Organics, building relationships with the existing employee, vendor, and customer bases. The IVFH board and management is extremely excited to work with such an experienced and energetic leader.

Chief Executive Officer of IVFH, Bill Bennett, stated, “We’re very enthusiastic about this acquisition, as it helps us launch new categories, enter new markets, and access new customers. This transaction is consistent with our previous commentary about our acquisition search criteria and exceeds our rate of return requirements before including the upside from synergies. We believe the financial terms of this transaction are attractive without factoring in any cost/revenue synergies or long-term strategic implications. That said, the core motivations behind this transaction are squarely rooted in the long-term strategic implications of building out the IVFH platform. By paying a fair price for a profitable and growing business, including the downside protection of receiving shelf-stable inventory equal in value to our cash outlay, all profit synergies achieved by this acquisition should provide material incremental shareholder value.”

Steptoe & Johnson PLLC acted as legal counsel to IVFH on the transaction. IVFH expects to incur transaction-related costs of approximately $75,000, most of which was incurred during the third and fourth quarters of 2024. Further details can be found in IVFH’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

About Innovative Food Holdings, Inc.
At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world’s best artisan food makers with top professional chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional chefs create unforgettable experiences for their guests. Additional information is available at www.ivfh.com.

Forward-Looking Statements

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the “Company”) that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “should,” “could,” “will,” “anticipate,” “believe,” “intend,” “plan,” “might,” “potentially” “targeting” or “expect.” Additional factors that could also cause actual results to differ materially relate to international crises, environmental and economic issues and other risk factors described in the Company’s public filings. The Company does not intend to update these forward-looking statements. The content of the websites referenced above are not incorporated herein.

Investor and Media contact:
Gary Schubert
Chief Financial Officer
Innovative Food Holdings, inc.
investorrelations@ivfh.com


FAQ

What is the value of IVFH's acquisition of Golden Organics?

IVFH is acquiring Golden Organics for $1.75 million, consisting of $1.4 million in cash and a $350,000 5-year seller's note with 6% interest.

How has Golden Organics performed financially in recent years?

Golden Organics has grown at a CAGR of 22% since 2018 and generated $6.8 million in trailing-twelve-month revenue, with positive unadjusted net income every year during this period.

What new assets does IVFH gain from the Golden Organics acquisition?

IVFH gains approximately $1.4 million in inventory, $100,000 of PP&E, over 200 new customers, and more than 800 incremental organic products.

Who will lead Golden Organics after the acquisition by IVFH?

Taeshaud Jackson has been appointed as the new President of Golden Organics to lead the business post-acquisition.

What synergies does IVFH expect from the Golden Organics acquisition?

IVFH expects to cross-list Golden Organics' products on its other sales channels, implement back-office synergies, and integrate warehouse management systems to drive efficiencies and growth opportunities.

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