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Berry People Announces Binding Letter of Intent to Sell to AgriFORCE Growing Systems Ltd; Jerald Downs and Mauro Pennella Discuss

Berry People Announces Binding Letter of Intent to Sell to AgriFORCE Growing Systems Ltd; Jerald Downs and Mauro Pennella Discuss



HOLLISTER, CA - Berry People has started off the week with a major strategic move as it has announced it has entered into a binding letter of intent (LOI) to sell its business to AgriFORCE Growing Systems. The LOI sets a purchase price of $28 million, which will give the Vancouver, Canada-based AgTech company 70 percent of Berry People’s equity interests.

Jerald Downs, Chief Executive Officer, Berry People“We are thrilled to join AgriFORCE group of companies, as we are mutually aligned on the Company’s vision and strategy, as well as AgriFORCE’s desire to build the Berry People brand alongside the Company’s founders and industry-experienced management team,” Jerald Downs, CEO of Berry People, said. “This assures us that we can be a reliable and rooted platform for our industry partners, other collaborators, and the broader communities that we serve.”

The $28 million purchase price consists of $18.2 million in cash and $9.8 million in AgriFORCE restricted shares and will be paid at closing, a release stated. Berry People will have the opportunity for future earnouts during the five years after closing based on future revenue and EBITDA targets associated with agreed-upon growth targets.

Berry People has entered into a binding letter of intent (LOI) to sell its business to AgriFORCE Growing Systems

Berry People was founded in 2017 and has established itself as a globally traded brand with scalable operations. Currently, it comprises over 200 retail and foodservice clients and over 100 grower and exporter clients in the United States, Canada, Mexico, Chile, Argentina, and Peru.

Mauro Pennella, President, AgriFORCE Brands“We are very excited to announce the LOI with The Berry People, which is a thriving business with promising growth opportunities. The AgriFORCE Brands division offers better and more nutritious food and plant-based products to today’s consumers in the form of better grains and pulses with UN(THINK), and now in terms of fresh and nutritious berries. We aim to maximize commercial synergies between The Berry People and UN(THINK), in terms of distribution, to retail, foodservice, and other areas. We anticipate that the additional volume coming in the next year from their new grower relationships in Mexico will drive robust growth in 2023,” Mauro Pennella, President of AgriFORCE Brands, said. “Furthermore, we see a great fit with Delphy, given their well-established soft fruit and CEA advisory business, as well as their advanced R&D capabilities, which will work with Berry People and its grower operators to drive increased yields and improved quality, enhance farm operations, and support the deployment of new varietals, fortifying Berry People’s vertical integration and growth plans.”

For more updates from the produce industry, keep reading AndNowUKnow.

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