According to a press release, the Local Bounti Corporation, an U.S. indoor agriculture company announced “the successful completion of its acquisition of California-based complementary indoor farming company Hollandia Produce Group, Inc., which operates under the name Pete's.” The purchase is effective as of April 4, 2022.
"The combination of Pete's operational scale and retail distribution footprint with our market-leading 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."
Local Bounti, per the release, 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 million of consideration payable in shares of Local Bounti common stock. Additionally, 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. Cook previously served as President of Pete's from November 2017 until its acquisition by Local Bounti.