Naturally Splendid to acquire Prosnack Natural Foods in Canada
Canada-headquartered Naturally Splendid Enterprises has entered an agreement with Prosnack Natural Foods and iCream Capital to acquire all of the issued and outstanding shares of Prosnack.
Prosnack offers lifestyle and healthy meal replacement products that include energy bars and on-the-go oatmeals under its ‘Elevate Me’ brand, which is distributed throughout North America.
According to the agreement, Naturally Splendid has agreed to pay to iCream C$200,000 ($1,57,240) in cash and will also issue more than one million Naturally Splendid common shares to iCream.
In addition, a sum of C$69,000 ($54,268) of the cash consideration will be paid to iCream on closing and the C$131,000 ($103,031) balance will be paid on or before 29 December.
Naturally Splendid may also use the option to pay all or any portion of the C$131,000 ($103,031) remaining cash consideration by the issuance of additional Naturally Splendid common shares having a value of C$212,875 ($167,341) based on the average closing price.
The acquisition will include automated manufacturing equipment in Prosnack’s facility in North Vancouver, Canada.
The completion of the transaction is subject to certain conditions, including the approval of the TSX Venture Exchange.
Naturally Splendid CEO Dave Eto said: “Our new relationship with Prosnack and its founders, Alan Maddox and Jim Pratt, continues our strategy to gain market share in the ‘healthy food sector’ retail markets.
“Not only will synergies benefit Naturally Splendid with enhanced and effective operating costs, leverage distribution and innovative products, but Alan’s relationships with retailers and co-packers and his business acumen strengthens both companies Canadian and US marketing and branding capabilities.”
Upon completion of the deal, Maddox is expected to become Naturally Splendid sales and marketing executive vice-president and Jim Pratt is expected to join Naturally Splendid’s advisory board.