Above Food Ingredients Inc. (Nasdaq: ABVE) has announced the acquisition of The Redwood Group (TRC), LLC’s Specialty Crop Food Ingredients Division. The acquired assets, which are based in Montana, supply high-quality grains, pulses, and specialty crops to over 35 countries, serving both the human and pet food sectors.
“This acquisition […] strengthens our international footprint as our first US physical facilities”
The deal, valued at $34 million, marks Above Food’s first physical expansion into the United States, significantly enhancing its supply chain and market presence. The assets generated $164 million in unaudited revenue in 2023 and have averaged an adjusted EBITDA of $5.3 million over the past three years.
Lionel Kambeitz, founder, president, CEO, and executive chairman of Above Foods, commented, “This acquisition marks a major milestone for Above Food and strengthens our international footprint as our first US physical facilities while also significantly growing our market share of the high-growth pet food category.”
Mike Kincaid, founder and president of The Redwood Group, acknowledged the significance of the transaction for the company: “The sale of our Specialty Crop Food Ingredient Division represents a significant milestone in The Redwood Group’s growth. This is a bittersweet moment in our history, yet it represents a tremendous opportunity for personal and professional growth for our teams in Mission, Kansas, and Chester, Montana, to join an organization principally focused on specialty crops and value-add opportunities in the region as well as globally.”
Above Food’s growth strategy
The Redwood Group specializes in food ingredient supply, feed ingredient supply, and grain merchandising. This transaction adds to Above Food’s recent string of acquisitions, including companies such as NRGene Technologies Ltd, Atlantic Natural Foods, GoodWheat, and Spanish food tech company Brotalia.
Above Food went public last month as part of a merger with Bite Acquisition Corp., further positioning itself as a leader in the plant-based and specialty food markets. The company’s strategy includes owning production and processing facilities, ensuring control over its supply chain, and maintaining a focus on quality, sustainability, and regenerative agriculture.
Expansion into pet food
This acquisition significantly expands Above Food’s footprint in the North American market, particularly in the high-growth pet food sector, which represents approximately 40% of TRG’s Specialty Crop Food Ingredient division’s sales. The company’s asset-light infrastructure and extensive supplier network are expected to drive further growth and operational efficiencies, with near-term opportunities to scale production and expand its export business.
Kambeitz continued, “TRG’s Specialty Crop Food Ingredient division operates in full harmony with our ‘Seed-to-Fork’ approach, providing us with top-tier processing and storage assets supported by end-to-end quality assurance, product development, and safety protocols while bringing strong relationships with growers, suppliers, and customers.
“It is a complete business with origination partners that are similarly utilizing sustainable farming practices that are consistent with our Canadian growers, which establishes broader reach across North America that we can leverage for the benefit of our shareholders.”
