PARIS: The ALGREEN group (Paris: ALGRE), specialized in multi-activity agribusiness, with a strategy to integrate companies, industries, farms, and brands within the same group while favoring traditional and innovative SMEs, has entered into negotiations with LUMILIITE for the sale of its 51% stake in its subsidiary SA NAKA.
SA NAKA markets a range of sparkling CBD-based beverages in the French and European market. NAKA enjoys a strong identity, presence in many major outlets, products that meet current consumption criteria, a team with extensive experience in the F&B universe, and immense development potential.
As a reminder, NAKA had to suspend the commercialization of its CBD-based products in December 2023 pending the Novel Food decree in Europe.
LUMILIITE group consists of two operational companies (LUMILIITE and VIF SYSTEMS), themselves divided into several business units: LE DOME, AGRICOOL, PRET A POUSSER, LA TIGE – each brand being associated with a specific activity and/or market segment.
Since its creation, LUMILIITE has structured an offer for the distribution of hydroponic equipment and plants through external growth operations: LUMILIITE in 2021 (LED activity), LA TIGE (plant production for the Café/Hotel/Restaurant “CHR” sector), AGRICOOL (plant production for the GMS/GSS) and PRET A POUSSER (hydroponic products for individuals) in 2022. The ambition is as follows: to master the value chain by combining different activities to create synergies between the various products and distribution channels, and thus, offer a consolidated range.
From NAKA’s point of view, the main objective of the acquisition would be to ensure the sustainability and development of its activities, maintaining a strong link with what has already been achieved. Indeed, due to the lack of a European accreditation on CBD in food, NAKA received a prefectural order on December 21, 2023, to suspend its activity.
From LUMILIITE’s point of view, the acquisition of NAKA would allow it to diversify its activity, which should be a source of growth through a distribution of risks, skills, and strategic business areas, allowing the structure to achieve higher competitiveness and increase its profitability.
More specifically, the takeover of the NAKA brand would allow LUMILIITE to:
- benefit from the customer recognition acquired since 2020;
- take advantage of existing distribution channels, thus facilitating the marketing of new products;
- access market knowledge;
- and possibly, achieve economies of scale by using the already established production and distribution infrastructures.
If applicable, details will be communicated for the continuation of the operation.
The ALGREEN group, a French player specialized in the industry and distribution of food products, is specialized in multi-activity agribusiness with a strategy to integrate companies, industries, and brands within the same group while favoring traditional and innovative SMEs.
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