Innovative Food Holdings, Inc. Announces Acquisition of the Assets of LoCo Food Distribution LLC, a Colorado-Based Distributor of Locally Produced Products
Innovative Food Holdings (OTCQB: IVFH) has acquired LoCo Food Distribution 's assets for $357,699, comprising a $304,269 upfront payment and a $53,430 performance-based earnout. The acquisition, completed through IVFH's subsidiary Golden Organics, includes $187,000 in net PP&E and requires a $375,000 working capital investment.
LoCo Foods, generating approximately $4.7 million in trailing twelve-month sales, serves over 200 customers along the Rocky Mountains' front range. The business will relocate from Fort Collins to Denver in March 2025, consolidating with Golden Organics' operations. This move is expected to generate significant savings in lease and logistics expenses, as 80% of LoCo's customers are in Denver.
The acquisition brings 500+ local Colorado items to IVFH's catalog and expands their customer base, particularly in retail where three large national retail chains represent 56% of LoCo's revenue. The company expects the deal to be EPS accretive in 2025, despite transition costs in the first half of the year.
Innovative Food Holdings (OTCQB: IVFH) ha acquisito gli asset di LoCo Food Distribution per 357.699 dollari, comprendente un pagamento iniziale di 304.269 dollari e un earnout basato sulla performance di 53.430 dollari. L'acquisizione, completata attraverso la sussidiaria di IVFH, Golden Organics, include 187.000 dollari in beni materiali e richiede un investimento in capitale circolante di 375.000 dollari.
LoCo Foods, che genera circa 4,7 milioni di dollari in vendite nell'ultimo anno, serve oltre 200 clienti lungo la fascia delle Rocky Mountains. L'azienda si trasferirà da Fort Collins a Denver nel marzo 2025, consolidandosi con le operazioni di Golden Organics. Questo spostamento si prevede genererà significativi risparmi in costi di locazione e logistica, dato che l'80% dei clienti di LoCo si trova a Denver.
L'acquisizione porta nel catalogo di IVFH oltre 500 articoli locali del Colorado e amplia la loro base clienti, in particolare nel settore retail dove tre grandi catene nazionali rappresentano il 56% del fatturato di LoCo. L'azienda si aspetta che l'affare contribuisca positivamente all'EPS nel 2025, nonostante i costi di transizione nella prima metà dell'anno.
Innovative Food Holdings (OTCQB: IVFH) ha adquirido los activos de LoCo Food Distribution por 357.699 dólares, que incluyen un pago inicial de 304.269 dólares y un earnout basado en el rendimiento de 53.430 dólares. La adquisición, completada a través de la subsidiaria de IVFH, Golden Organics, incluye 187.000 dólares en activos y requiere una inversión en capital de trabajo de 375.000 dólares.
LoCo Foods, que genera aproximadamente 4,7 millones de dólares en ventas en los últimos doce meses, atiende a más de 200 clientes en la cordillera de las Montañas Rocosas. El negocio se trasladará de Fort Collins a Denver en marzo de 2025, consolidándose con las operaciones de Golden Organics. Se espera que este movimiento genere ahorros significativos en costos de arrendamiento y logística, dado que el 80% de los clientes de LoCo se encuentran en Denver.
La adquisición aporta más de 500 artículos locales de Colorado al catálogo de IVFH y amplía su base de clientes, particularmente en el sector minorista donde tres grandes cadenas nacionales representan el 56% de los ingresos de LoCo. La empresa espera que el acuerdo sea positivo para las ganancias por acción (EPS) en 2025, a pesar de los costos de transición en la primera mitad del año.
Innovative Food Holdings (OTCQB: IVFH)가 LoCo Food Distribution의 자산을 357,699달러에 인수했습니다. 이 금액은 304,269달러의 선불 지급과 53,430달러의 성과 기반 추가 보상으로 구성됩니다. IVFH의 자회사 Golden Organics를 통해 완료된 이번 인수는 187,000달러의 순 자산을 포함하며, 375,000달러의 운영 자본 투자가 필요합니다.
LoCo Foods는 지난 12개월 동안 약 470만 달러의 매출을 올리며, 록키 마운틴 지역에 있는 200개 이상의 고객에게 서비스를 제공합니다. 이 사업은 2025년 3월에 포트 콜린스에서 덴버로 이전할 예정이며, Golden Organics의 운영과 통합됩니다. 이move는 LoCo의 고객 중 80%가 덴버에 위치해 있어 임대 및 물류 비용에서 상당한 절감 효과를 가져올 것으로 예상됩니다.
이번 인수는 IVFH의 카탈로그에 500개 이상의 콜로라도 현지 아이템을 추가하고 고객 기반을 확대합니다. 특히 소매 부문에서 3개의 대형 전국 소매 체인이 LoCo의 매출의 56%를 차지하고 있습니다. 회사는 이 거래가 2025년 EPS에 긍정적인 영향을 미칠 것으로 예상하고 있으며, 연초 전환 비용이 발생할 것으로 보입니다.
Innovative Food Holdings (OTCQB: IVFH) a acquis les actifs de LoCo Food Distribution pour 357 699 dollars, comprenant un paiement initial de 304 269 dollars et un earnout basé sur la performance de 53 430 dollars. L'acquisition, réalisée par l'intermédiaire de la filiale d'IVFH, Golden Organics, inclut 187 000 dollars en actifs nets et nécessite un investissement en fonds de roulement de 375 000 dollars.
LoCo Foods, qui génère environ 4,7 millions de dollars de ventes sur les douze derniers mois, sert plus de 200 clients le long de la cordillère des Rocheuses. L'entreprise se déplacera de Fort Collins à Denver en mars 2025, se consolidant avec les opérations de Golden Organics. Ce déménagement devrait entraîner des économies significatives sur les coûts de location et de logistique, car 80% des clients de LoCo se trouvent à Denver.
L'acquisition ajoute plus de 500 articles locaux du Colorado au catalogue d'IVFH et élargit leur base de clients, en particulier dans le secteur de la vente au détail, où trois grandes chaînes de détaillants nationaux représentent 56% des revenus de LoCo. La société s'attend à ce que l'accord soit bénéfique pour le BPA en 2025, malgré les coûts de transition pendant la première moitié de l'année.
Innovative Food Holdings (OTCQB: IVFH) hat die Vermögenswerte von LoCo Food Distribution für 357.699 Dollar erworben, bestehend aus einer Vorauszahlung von 304.269 Dollar und einem leistungsbasierten Earnout von 53.430 Dollar. Der Erwerb, der über die Tochtergesellschaft von IVFH, Golden Organics, abgeschlossen wurde, umfasst 187.000 Dollar an Nettovermögen und erfordert eine Investition in Betriebskapital von 375.000 Dollar.
LoCo Foods, das in den letzten zwölf Monaten etwa 4,7 Millionen Dollar Umsatz erzielt hat, bedient über 200 Kunden entlang der Rocky Mountains. Das Unternehmen wird im März 2025 von Fort Collins nach Denver umziehen und sich mit den Aktivitäten von Golden Organics konsolidieren. Dieser Schritt wird voraussichtlich erhebliche Einsparungen bei Miet- und Logistikkosten bringen, da 80% von LoCos Kunden in Denver ansässig sind.
Die Akquisition bringt über 500 lokale Colorado-Produkte in den Katalog von IVFH und erweitert deren Kundenbasis, insbesondere im Einzelhandel, wo drei große nationale Einzelhandelsketten 56% des Umsatzes von LoCo ausmachen. Das Unternehmen erwartet, dass der Deal im Jahr 2025 EPS positiv beeinflusst, trotz der Übergangskosten in der ersten Jahreshälfte.
- Acquisition price of $357,699 represents an EBITDA multiple below company's 3-5x target
- Expected to be EPS accretive in 2025
- Adds $4.7M in trailing twelve-month sales
- Brings 500+ new local Colorado items to product catalog
- Significant cost savings expected from warehouse consolidation and logistics optimization
- Expands customer base with 200+ new Rocky Mountain clients
- Three large national retail chains represent 56% of revenue
- Initial working capital investment of $375,000 required
- Moving and transitional costs expected in first half 2025
- Transaction-related costs of approximately $30,000
BONITA SPRINGS, Fla., Jan. 07, 2025 (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 opportunistic acquisition of
LoCo Foods was founded by Elizabeth Mozer in 2011 with a dream and a minivan. Personally committed to eating locally and sustainably, Elizabeth and her husband Ben struggled to find the local products they wished to feed to their family and sell to the customers of their other business, a local movie theater, The Lyric. So after years of scouring the greater Rocky Mountain Region to source these products, they started LoCo Foods in the basement of their Fort Collins, CO home. Their goal was to help local Colorado food brands find a thriving market for their goods, and enabling the community to have a fresher, healthier food system, made by people they know and trust. Now more than a decade later, LoCo Foods’ sales have reached approximately
The purchase includes approximately
For additional context, LoCo Foods’ growth has been entirely financed with debt. This fact, coupled with the impact of COVID and other issues common in small, fast-growing businesses, led to a worsening working capital situation. Despite maintaining positive adjusted EBITDA, interest expense, principal repayments, and asset replacement costs were prioritized over timely vendor payments and inventory purchases. This transaction therefore allows the original mission of LoCo Foods to continue forward, enables vendors to receive payment and continue their growth, and represents an attractive opportunity to IVFH stockholders. Since closing the transaction on December 20th, 2024, all past due payables have now been brought current, and inventory investments are being made to support future growth.
LoCo Foods brings a significant incremental customer base and sourcing capabilities to IVFH. Its 200+ Rocky Mountain customers are primarily retailers, with the Denver divisions of three large national retail chains making up approximately
Post integration, the cross-selling opportunities to both Golden Organics and LoCo Foods customers are significant, as there is minimal overlap. Another opportunity is to sell Golden Organics’ catalog to LoCo Foods’ supplier base of Denver-area food manufacturers. The Company will also consolidate delivery routes, improving delivery economics and return on assets. IVFH expects synergies from back office consolidation, implementing a single ERP system, and integrating a single warehouse management system. The Company also intends to expand LoCo Foods’ growth opportunities by providing access to the other sales channels under the IVFH umbrella. These opportunities should further improve the deal’s economics and will be a key focus post-closing.
LoCo Foods’ business will be managed by the President of Golden Organics business, Taeshaud Jackson, along with a key employee from LoCo Foods, Sam Novotny. The Company has also signed a consulting agreement with Elizabeth Mozer. The Company will continue to use the LoCo Foods brand name given the strong reputation it has garnered with its vendors and customers over the years.
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, with simple immediate cost savings opportunities to better leverage the Golden Organics assets we recently purchased. This transaction is consistent with our previous commentary about our acquisition search criteria and far exceeds our rate of return requirements before including the upside from synergies. We believe the financial terms of this transaction are attractive with only factoring in the near term, committed relocation of the business, and before including any cost/revenue synergies or other long-term strategic implications. Not only do we look forward to Elizabeth and Sam’s assistance with the move and integration, we are sincerely excited for the long-term contributions they will bring to the business given their intricate knowledge, deep local network, and proven expertise relating to LoCo Foods and all of its stakeholders. Given the opportunistic purchase price and structure of this deal, as well as the know-how of the team we are onboarding, this is an exciting additional opportunity for IVFH in the Denver market.”
Steptoe & Johnson PLLC acted as legal counsel to IVFH on the transaction. IVFH expects to incur transaction-related costs of approximately
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 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
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When did IVFH complete the acquisition of LoCo Foods?
