Organto Foods Inc., a prominent provider of organic and value-added organic fruit and vegetable products today announced that it has agreed to acquire 100% of the outstanding shares of NFG New Fruit Group GmbH, a private German corporation operating since 2019. Closing of the transaction is expected to be completed in early 2023 and is subject to a number of closing conditions including acceptance by the TSX Venture Exchange.
- Complimentary product offering including core focus on organic and non-GMO banana, avocado and mango. NFG is a fully certified organic products supplier.
- Asset light business model aligned with Organto’s operating platform.
- European sales focus with a strong existing retail customer base in Germany, Italy, France and Denmark.
- Global supply relationships with established grower partners in the Caribbean, South America and Africa.
- Leadership team with deep global organic fruit and vegetable experience.
- Expected sales of approx. €15 million (approx. CDN$20 million) in 2023 with positive EBITDA contribution.
- Opportunities to leverage Organto’s infrastructure, broad product portfolio, and branded I AM Organic product and proprietary digital passport capabilities across an expanded platform.
“We are extremely excited to welcome the New Fruit Group team to Organto, and believe the combination of our businesses will leverage the unique capabilities of each organization as we pursue our mission of making organic fresh fruit and vegetable products available for every consumer, a mission we believe is good for both people and planet. We have known the leadership team of the New Fruit Group for some time, admire the platform that they have built in a relatively short period of time, and are thrilled to have them join the Organto family.” commented Steve Bromley, Chair and Co-CEO of Organto and Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe BV.
“NFG will add significant size and scale to our business with their sales focus on important retails markets in Germany, Italy, France and Denmark. The complementary components of their product portfolio will add sourcing and sales depth to our business, and we believe provide opportunities to leverage Organto’s infrastructure, broad product portfolio, and branded products capabilities, aligning with one of our core acquisition objectives of making 1 + 1 = 3.”
The New Fruit Group commenced operations in 2019 and currently has sales and marketing offices in Germany and Italy. The business is active in the import and trade of fresh organic produce with a focus on organic banana, avocado and mango. NFG previously operated growing operations on the Ivory Coast before recently divesting them to a new corporation controlled by the founders of NFG. These growing operations will not be acquired as part of this transaction but NFG has entered into a long-term supply agreement for ongoing supply from this operation.
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Organto Foods Inc.