VANCOUVER: Modern Meat Inc., a plant-based meat manufacturer, has signed a letter of intent for the acquisition of Kitskitchen Health Foods Inc., an established local plant-based soup company with a line-up of products that are currently available in many large grocery retailers including Fresh Street Market and Whole Foods.
Led by an all-female leadership team, Kitskitchen has been in business since 2013. Their commitment to provide natural, locally sourced, sustainable, plant-based soup has led to a highly engaged consumer base.
Currently their soups can be found at 135 retailers throughout British Columbia and Alberta and Kitskitchen has provided an expected revenue forecast to the Company of $950,000 for 2021.
“The acquisition unites us with a well-established brand with an attractive growth profile. Kitskitchen product and management aligns with Modern Meat’s philosophy of the fast growing plant-based space. We feel the ready-to-eat category in the plant-based space is under explored. By acquiring a well-recognized local brand and putting our financial resources behind it, I feel we can grow the sales of Kitskitchen significantly,” states Tara Haddad, CEO of Modern Meat.
In connection with the transaction, Modern Meat will own the distribution rights to the Kitskitchen brands and plans to continue to work with its team. The total purchase price for this acquisition is 300,000 shares and finder’s fee of 9,000 shares will be issued.
“Kitskitchen is a strategic acquisition for our company as it has established a great local following with consumers and has a broad existing distribution with many online and large grocery chains. By implementing our financial expertise with the kits team, we will be looking to grow its revenues and develop it into a national brand,” states Campbell Beecher, Head of Finance and Mergers and Acquisitions of Modern Meat.
The completion of this transaction is subject to conditions including the completion of definitive documentation, approval of the Canadian Securities Exchange and other customary conditions.
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