Berry People LLC, Hollister, Calif., has entered into a binding letter of intent to sell its business to AgriForce Growing Systems Ltd, an intellectual property-focused ag tech company based in Vancouver, British Columbia, according to a release.
The Berry People company was founded in 2017 to create a new platform to meet market demand for a branded, year-round and full-line supply of organic and conventional berries.
“Berry People quickly established a recognized global trade brand and scalable operations, comprised of over 200 retail and foodservice clients and over 100 grower and exporter clients across the U.S., Canada, Mexico, Chile, Argentina and Peru,” the release said.
The letter of intent, which Berry People says will be followed by a definitive purchase agreement, sets a purchase price of $28 million, consisting of $18.2 million in cash and $9.8 million in AgriForce restricted shares, which will be paid at closing to acquire 70% of Berry People’s equity interests. Berry People will have the opportunity for future earnouts during the five years after closing based on future revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) targets associated with agreed upon growth targets, according to the release.
“We are thrilled to join AgriForce group of companies, as we are mutually aligned on the company’s vision and strategy, as well as AgriForce’s desire to build the Berry People brand alongside the company’s founders and industry-experienced management team,” Jerald Downs, CEO of Berry People, said in the release. “This assures us that we can be a reliable and rooted platform for our industry partners, other collaborators and the broader communities that we serve.”
AgriForce says it’s focused on building an integrated ag tech platform that combines technology, intellectual property and knowledge to solve an urgent problem — providing the best solutions to help drive sustainable crops and nutritious food for people around the world.
“We are very excited to announce the LOI with The Berry People, which is a thriving business with promising growth opportunities,” Mauro Pennella, president of AgriForce Brands, said in the release. “The AgriForce Brands division offers better and more nutritious food and plant-based products to today’s consumers, in the form of better grains and pulses with UN(THINK), and now in terms of fresh and nutritious berries.
“We aim to maximize commercial synergies between The Berry People and UN(THINK), in terms of distribution, to retail, foodservice and other areas,” Pennella continued. “We anticipate that the additional volume coming in the next year from their new grower relationships in Mexico will drive robust growth in 2023.”
AgriForce says it aims to be a global leader in delivering plant-based foods and products through an advanced and sustainable ag tech platform that makes positive change in the world — from seed to table.
