Vanguard Food LP Announces Closing of Transaction to Create Emerging Leader in North American Produce Industry

Rhea-AI Summary

Vanguard Food LP has completed a significant transaction creating a joint venture in the North American produce industry, backed by Kennedy Lewis Investment Management, Sweat Equities, and Village Farms International. The deal privatizes certain assets from Village Farms International's fresh produce segment, aiming to establish a premier branded CPG foods company focused on healthy lifestyles and sustainable farming. The venture plans to execute a roll-up strategy by acquiring other North American produce brands and assets, with additional capital support from the parties involved. The new entity will focus on expanding product categories and leveraging decades of industry experience to capitalize on consumer trends toward healthier food alternatives. Leadership includes Charlie Sweat as Chairman, and Michael A. DeGiglio serving as Interim CEO while maintaining his role as Village Farms' CEO.

Positive

• Creation of a stronger entity with combined resources and expertise in the produce industry
• Access to additional capital for future acquisitions and expansion
• Strategic positioning to capitalize on growing consumer demand for healthy food alternatives
• Potential for value creation through roll-up strategy and M&A opportunities

Negative

• Privatization of Village Farms' fresh produce segment may reduce transparency for public shareholders
• Integration risks associated with planned acquisitions and roll-up strategy
• Interim CEO arrangement suggests incomplete leadership transition

Insights

Corporate Finance Analyst

Village Farms' privatization of its produce segment creates a roll-up platform with Kennedy Lewis and Sweat Equities, indicating strategic repositioning.

This transaction marks a significant corporate restructuring for Village Farms International (VFF), which has privatized portions of its fresh produce segment through a newly-formed joint venture called Vanguard Food LP. The deal brings together three key players: Kennedy Lewis Investment Management (private investment firm), Sweat Equities (led by produce industry veteran Charlie Sweat), and Village Farms itself.

The strategic rationale appears two-fold: First, the formation of this produce-focused entity with dedicated private capital backing suggests Village Farms is reshaping its corporate structure to potentially focus on other business segments. Second, the explicit mention of a "roll-up strategy" signals Vanguard's intention to consolidate fragmented assets across the North American produce industry through acquisitions.

The transaction structure is notable - it's not a complete divestiture, as Village Farms maintains participation in the joint venture while Michael DeGiglio serves as interim CEO of the new entity while remaining CEO of Village Farms. This suggests a transitional approach where Village Farms maintains operational involvement while bringing in external capital and expertise.

The involvement of Kennedy Lewis, a private investment firm, indicates this is designed as a platform investment with significant growth capital available for the planned acquisition strategy. The focus on "branded CPG foods" and "healthy lifestyles" points to a value-added approach beyond commodity produce, potentially generating higher margins through premium positioning.

While financial terms aren't disclosed, the release emphasizes growth through both acquisitions and organic product development, suggesting a comprehensive expansion strategy rather than just cost-cutting through consolidation.

– Transaction creates new joint-venture in the North American produce industry backed by private investment firms –

– Parties intend to provide additional capital to execute a roll-up strategy of other produce assets and operations –

LAKE MARY, Fla., June 02, 2025 (GLOBE NEWSWIRE) -- Vanguard Food LP, a privately-held produce industry joint venture between Kennedy Lewis Investment Management, Sweat Equities, and Village Farms International, today announced the closing of a transaction which created a new, emerging leader in the North American produce industry.

The previously-announced transaction privatized certain assets and operations of Village Farms International’s fresh produce segment, leveraging decades of leadership in the cultivation, sales, marketing and distribution of produce with the intention of creating a premier branded CPG foods company supporting healthy lifestyles and sustainable farming practices. The Parties expect to support Vanguard with additional capital resources to execute a roll-up strategy of other North American produce brands and assets, and plan to expand product categories and offerings for customers through M&A.

Charlie Sweat, Chairman of Vanguard and Founder of Sweat Equities commented, “We are thrilled to announce the closing of this transaction, and believe we’re positioned well to capitalize on shifting consumer behavior that demands healthier alternatives to processed foods. We now have an established, proven operating team and expect to attract additional human capital as we expand our platform and execute our strategy.”

Doug Logigian, Co-Managing Partner and President of Kennedy Lewis Investment Management commented, “We are pleased to announce our participation with the closing of this transaction and see tremendous opportunity for Vanguard to deliver value for stakeholders as it expands its platform through new product development and IP innovation. We look forward to partnering with Charlie and Village Farms and to supporting Vanguard as it executes its go-forward growth strategies.”

Michael A. DeGiglio, Chief Executive Officer of Village Farms and Interim Chief Executive Officer of Vanguard Food LP commented, “Today’s announcement reflects the beginning of a new era for the legacy produce business of Village Farms, and we’re excited to begin building our shared vision for the future. This partnership makes us stronger, provides more resources to drive innovation and value for customers, and will serve as a catalyst for future growth and expansion.”

About Vanguard Food LP

Vanguard Food LP is a privately-held joint-venture between Kennedy Lewis Investment Management, Sweat Equities, and Village Farms International, Inc. which seeks to create a premier branded CPG foods company supporting healthy lifestyles and sustainable farming practices. The company owns and operates 80-acres of advanced greenhouse facilities in Texas, and through supply agreements with grower partners in the United States, Canada, and Mexico, sources and distributes fresh produce from an incremental 385-acres of greenhouse and outdoor production. The company expects to continue acquiring other produce assets and operations with the support of its private investment firm partners, and will review various products and companies across many production methods while expanding its platform.

About Kennedy Lewis Investment Management

Kennedy Lewis is a credit focused alternative asset manager founded in 2017 by David Chene and Darren Richman with over $28 billion under management across private funds, a publicly traded REIT focused on land banking, a non-exchange traded business development company, and collateralized loan obligations.

About Sweat Equities

Sweat Equities is a private equity firm focused on investments in the health and wellness area with an emphasis on consumer goods in the food and beverage space. Sweat Equities is led by founder and managing principal, Charlie Sweat, and is made up of seven funds – a primary SE Fund LP with seven portfolio companies and six SPVs (Special Purpose Vehicles) totaling approximately $100 million of invested capital. The Sweat Equities model focuses on partnering with companies that can benefit beyond capital, leveraging the added value of the Sweat Equity team and its group of Advisors specializing in executive leadership, supply chain, operations/manufacturing, finance, sales and marketing, communications, and events.

Sweat Equities Fund II targets $400 million of capital focused on larger, mid-market companies versus the more emerging company markets in its first Funds. This initial Fund II investment represents the first step in a fast and large M&A strategy to build a fresh foods platform bringing healthy, fresh foods to the market at scale.

Contact Information:
Sam Gibbons
Senior Vice President, Corporate Affairs
Phone: (407) 936-1190 ext. 328
Email: sgibbons@villagefarms.com

FAQ

What is the purpose of the Vanguard Food LP joint venture transaction?

The joint venture aims to create a leading North American produce company, focusing on healthy lifestyle products and sustainable farming, while executing a roll-up strategy to acquire additional produce brands and assets.

Who are the key partners in the Vanguard Food LP joint venture?

The joint venture is backed by Kennedy Lewis Investment Management, Sweat Equities, and Village Farms International.

What is Vanguard Food LP's growth strategy?

The company plans to execute a roll-up strategy by acquiring other North American produce brands and assets, expanding product categories, and focusing on new product development and IP innovation.

Who are the key executives leading Vanguard Food LP?

Charlie Sweat serves as Chairman, while Michael A. DeGiglio, CEO of Village Farms, is serving as Interim Chief Executive Officer of Vanguard Food LP.

How does this transaction affect Village Farms International?

The transaction privatizes certain assets and operations of Village Farms International's fresh produce segment, while maintaining Village Farms as a partner in the joint venture.