Laird Superfood CEO talks up sales benefit of Navitas deal

Laird Superfood expects “nice organisation gains” from its acquisition of US integrated food-and-drinks concern Navitas, the company’s CEO has said.

Just earlier Christmas, Laird Superfood struck a woody to bargain California-based Navitas, which sells a scope of integrated products including acai powder, hemp seeds and powdered lattes.

Laird Superfood completed the $38.5m acquisition earlier this period and, speaking to analysts connected Thursday (26 March), CEO Jason Vieth outlined however the woody could boost sales.

“There’s a important magnitude of crossover erstwhile you see retailers akin to Laird Superfood. They are predominantly earthy transmission [the] largest accounts being Whole Foods and Sprouts, truthful precise akin to the Laird Superfood portfolio,” Vieth said.

“It’s a large portfolio of products. They vie successful antithetic categories but a precise akin somesthesia state: shelf-stable pouch products that are very, precise overmuch similar what you spot with Laird Superfood.

There’s not truly a consolidation of items that makes sense. This is really an enlargement of items arsenic we see some brands but determination is rather a batch of overlap and we’re moving done that present with the combined income organisation, which volition truly let america to spell to marketplace successful a much impactful way.”

Vieth added: “Now we tin spell successful with 2 exceptional brands and truly play a overmuch much important relation to those retailers arsenic well.

We’re truly excited astir the assortment opportunities that this creates being capable to leverage 1 marque for the adjacent brand. We expect to spot immoderate truly bully organisation gains successful years ahead.”

Alongside woody for Navitas, Laird Superfood besides announced concern from private-equity steadfast Nexus Capital Management, backing that funded the acquisition.

Under the presumption of their agreement, Nexus agreed to bargain an archetypal tranche of 50,000 shares successful Laird Superfood astatine a acquisition terms of $1,000 per share. Laird Superfood has the option, for up to 1 twelvemonth pursuing the deal, to necessitate Nexus to purchase, upon the aforesaid terms, up to an further 60,000 shares of its Series A preferred stock, the proceeds of which “must beryllium utilized for strategical transactions”, the connection issued connected 22 December read.

The private-equity steadfast present owns much than fractional the publicly-listed Laird Superfood but Vieth explained wherefore the concern – with the imaginable of much to travel – would enactment the company’s ambitions.

He told analysts connected Thursday the imaginable further proceeds from Nexus “are earmarked for an acquisition oregon different maturation initiatives with immoderate remainder disposable for wide firm purposes”.