Organto Foods Inc., a provider of organic and value-added organic fruits and vegetables today announced that it has finalized definitive agreements to acquire 100% of the outstanding shares of Fresh Organic Choice BV, a privately held Dutch corporation. Fresh Organic is a provider of a full range of year-round fresh cut organic herbs, marketed under the Fresh Organic Choice brand, with sales throughout Europe.
“We are extremely excited to finalize the acquisition of Fresh Organic, a business that we believe is a great fit with our fast-growing fresh organic fruits and vegetables platform. We intend to continue our aggressive internal growth and acquisition strategy as we pursue our objective of building an ethics driven “one-stop shop” in fresh organic and specialty fruits and vegetables.” commented Steve Bromley, Chair and Co-CEO and Rients van der Wal,
Co-CEO and CEO of Organto Europe BV. “Fresh Organic is a leader in the fast-growing fresh cut organic herbs category, and we are extremely pleased to have them join the Organto team. By combining our collective strengths, we are confident that we will be able to profitably expand our fresh herbs and taste-maker categories for years to come. We are convinced that demand for fresh cut organic herbs will continue to grow, driven by the rise in home cooking and desire for new taste sensations, combined with the desire for the unique health benefits that herbs provide.”
Fresh Organic operates an asset light business model, enabling a straight forward integration process with Organto. Fresh Organic’s fresh cut packaged herbs portfolio includes mint, oregano, basil, chives, parsley, dill, thyme, rosemary, sage, tarragon and others, which are sold in a wide range of branded package formats. Product is sourced primarily from strategic local growers in the Netherlands, Germany, Spain, Italy, Germany and Portugal, with sourcing programs being developed in Tunisia and Ethiopia.
Herbs are recognized for their intense flavor and impressive nutritional profiles, including high levels of vitamins, essential minerals, antioxidants, fiber and antimicrobial properties, all considered important ingredients to boosting immunity and part of a healthy diet. With the increase in cooking at home during the COVID-19 pandemic, demand for fresh cut herbs has increased as consumers have sought the combination of taste intensity and health benefits that herbs provide. This trend is expected to continue as many consumers have indicated they will continue with increased healthy home cooking once the pandemic has passed.
Fresh Organic has annualized revenues of approximately CDN $2.0 million, with strong growth projected in the future. The acquisition of Fresh Organic is expected to be both gross margin and EBITDA accretive to Organto.