GreenSpace expects the purchase of the B.C.-based organic children’s food developer to be a transformative move for the company
Toronto-based GreenSpace Brands Inc., a developer and seller of premium natural food products, has completed its acquisition of Love Child (Brands) Inc., a Whistler, B.C.-based organic infant and children’s food developer and distributor.
The purchase agreement was announced in September, and the acquisition closed in October. The aggregate purchase price for Love Child was approximately $6 million, payable by way of $2.1 million cash, $900,000 vendor-take back notes, 1,190,476 common shares of GreenSpace and earn-out warrants exercisable for up to 714,286 common shares at a price of $1.05 per common share, vesting in approximately two years if certain gross revenue targets are reached.
“The acquisition of Love Child is transformative for GreenSpace. We have more than doubled our size on a basis that we expect to be immediately and highly accretive to GreenSpace,” says Matthew von Teichman, CEO of GreenSpace. “We anticipate seeing an immediate increase in our revenues due to this acquisition. Moreover, we have proven our concept of sourcing, funding, and executing on the acquisition of other value-add natural food companies on an accretive basis within just six months of completing our qualifying transaction. We are pleased to welcome the Love Child team to GreenSpace and look forward to working with them.”
Love Child, which was featured prominently on the CBC show Dragons Den, has had consistently strong revenue growth since it started operations in 2013. Last fiscal year Love Child had net revenue of $5.0 million, an increase of 213 per cent over the previous year.
“Our commitment to create honest, pure and delicious foods that includes nutritionally-rich and natural ingredients have allowed us to differentiate Love Child in the North American market,” says Leah Garrad-Cole, founder of Love Child. “GreenSpace is a perfect home for the Love Child brand with their commitment to continue to bring innovative nourishing products to parents in North America and broadening our development and retail capabilities.”