Local Bounti Corporation announced the successful completion of its acquisition of California-based complementary indoor farming company Hollandia Produce Group, which operates under the name Pete's since April 4, 2022.
"The combination of Pete's operational scale and retail distribution footprint with our unit-level economics creates immediate value for our employees, customers, partners, and shareholders," said Craig Hurlbert, Co-CEO of Local Bounti. "This acquisition is immediately accretive and opens the door for further margin expansion as we implement our proprietary Stack & Flow Technology into Pete's facilities and unlock additional operational synergies. Combined, this platform is well-positioned to take on the rapidly expanding controlled environment agriculture produce market, which is expected to reach $30 billion in the U.S. by 2025, and generate accelerated returns on invested capital. We welcome all of Pete's 130 employees to the Local Bounti family and look forward to a seamless integration process."
Magda Overgaag, Co-Founder, Matriarch of Hollandia Produce Group, and Mother of Pete, stated, "The closing of the transaction with Local Bounti marks yet another important milestone for my family and our long history within the CEA industry that began over 100 years ago when my father and my husband's father began growing under glass in the Netherlands. We immigrated our family to California in 1968 and have been driving innovation in growing techniques across a variety of crops ever since. Today, Pete's represents a trusted brand that delivers the highest quality living lettuce varieties in the industry. We couldn't be more excited with this transaction, which ensures that our family's legacy will live on and be a formidable force in the CEA industry for generations to come."
Local Bounti funded the purchase price of $122.5 million, with a combination of $92.5 million in cash provided pursuant to Local Bounti's lending facility with Cargill, and $30.0 million of consideration payable in shares of Local Bounti common stock. In conjunction with the closing, Local Bounti also announced the appointment of Brian Cook to the position of President at Local Bounti, who will report to co-CEOs Craig Hurlbert and Travis Joyner. Mr. Cook previously served as President of Pete's from November 2017 until its acquisition by Local Bounti.
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Pete's Living Greens