Innovative Food Holdings Expands with LoCo Foods Acquisition
Deal News | Jan 07, 2025 | Globenewswire
Innovative Food Holdings, Inc., a company known for selling gourmet specialty foods to professional chefs, has acquired the assets of LoCo Food Distribution LLC. The Colorado-based distributor specializes in locally produced products and was purchased for a total consideration of $357,699, which includes both an upfront cash payment and a one-year performance-based earnout. The acquisition will allow Innovative Food Holdings to expand its customer base and product offerings, primarily through improved efficiencies and the consolidation of warehouse operations. This strategic purchase is expected to lower operational costs, leading to EBITDA benefits and increased earnings per share in 2025. The transaction is seen as an opportunity to align with local food supply chains and is consistent with the company's acquisition strategy. Legal counsel for the deal was provided by Steptoe & Johnson PLLC.
Sectors
- Food Distribution
- Merger and Acquisition
- Gourmet Specialty Foods
Geography
- United States – The acquisition involves companies based in the United States, with operations in Florida and Colorado.
- Colorado – LoCo Food Distribution is based in Fort Collins, Colorado, and serves primarily the Rocky Mountain region.
- Florida – Innovative Food Holdings is based in Bonita Springs, Florida.
Industry
- Food Distribution – The article discusses the acquisition of a company involved in distributing locally-produced food products to various customers such as retailers, hotels, and restaurants.
- Merger and Acquisition – The article centers around the acquisition of LoCo Food Distribution by Innovative Food Holdings.
- Gourmet Specialty Foods – Innovative Food Holdings operates in the gourmet specialty food sector, connecting artisan food makers with professional chefs.
Financials
- $357,699 – Total consideration for the acquisition consisting of $304,269 upfront cash and $53,430 earnout.
- $375,000 – Anticipated initial working capital investment post-acquisition.
- Approximately $30,000 – Estimated transaction-related costs incurred by Innovative Food Holdings.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Innovative Food Holdings, Inc. | Acquiring Company | Company | A national seller of gourmet specialty foods targeting professional chefs. |
| LoCo Food Distribution LLC | Target Company | Company | A distributor of locally produced products based in Fort Collins, Colorado. |
| Golden Organics, Inc. | Subsidiary | Company | A subsidiary of Innovative Food Holdings involved in the acquisition of LoCo Foods. |
| Steptoe & Johnson PLLC | Legal Advisor | Company | Provided legal counsel to Innovative Food Holdings during the transaction. |
| Elizabeth Mozer | Consultant | Person | Founder of LoCo Foods who remains involved post-acquisition under a consulting agreement. |
| Bill Bennett | CEO | Person | Chief Executive Officer of Innovative Food Holdings. |
| Taeshaud Jackson | President | Person | President of Golden Organics managing LoCo Foods post-acquisition. |
| Sam Novotny | Key Employee | Person | An employee from LoCo Foods involved in operations post-acquisition. |