Organic salad producer Earthbound Farm to be put up for sale

Earthbound Farm Organic, a leading grower of organic produce in the US, is evaluating plans to sell the company in a deal estimated to be worth between $600m and $700m.

Earthbound Farm Organic has appointed financial services provider Barclays to manage the sale of the company.

The sale process is in the early stages of negotiations, reported Reuters citing sources familiar with the matter.

Earthbound Farm Organic, which is backed by Dallas-based private equity firm Kainos Capital, posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $75m and revenues of $460m in 2012.

Kainos Capital is a new firm formed by the executives from the food and consumer products team of HM Capital Partners, which in 2012 announced plans to wind down its operations, and had previously acquired about 70% of Earthbound Farm Organic in 2009.

Earthbound Farm Organic, which was established in 1984 and is based in San Juan Bautista, California, is a producer and marketer of more than 100 varieties of organic items including salads, arugula, baby spinach, mixed greens, juices as well as fresh and dried fruits and vegetables.

The company’s pre-washed bagged salads are available in about 75% of the supermarkets in the US including Walmart Stores, Whole Foods Market, and Costco Wholesale.

Earthbound Farm Organic was started on a 2.5 acre farm in California; since then it has expanded to more than 26,000 acres and currently employs 150 farmers.

In April 2013, the company announced key promotions and hires in its sales and marketing team, in order to position the organisation to support anticipated growth.