The acquisition supports Laird’s expansion into new retail segments like convenience and drug stores
Laird Superfood has agreed to purchase all of the equity interests of fellow Central-Oregon based Picky Bars, an active player in the healthy snack market and focused on nutritionally balanced, real-food products to fuel performance. Laird will buy the assets for $12 million in cash and stocks.
The transaction represents an acquisition multiple of approximately 1.2x estimated 2022 revenue. Laird Superfood expects the transaction to be supportive of its path to an improving gross margin profile and accretive to the net income of Laird Superfood in 2022 and beyond.
Laird does not expect the transaction to have any meaningful impact on the company’s net income per share in 2021.
Picky Bars’ product portfolio includes the namesake Picky Bar as well as Performance Oatmeal, Performance Granola, Pancakes and Drizzle nut-butter. The company operates a direct-to-consumer distribution to a loyal fanbase. Its online platform includes the Picky Club, a monthly subscription box and loyalty programme.
Paul Hodge, chief executive of Laird Superfood, said: “We are so excited to welcome Picky Bars into the Laird family. Founded by three incredible athletes who are true to their mission and vision, Picky Bars aligns with our core values of trust and authenticity and our product ethos prioritizing high performance and sustainability, not just for athletes, but for everyone in everyday life.
“This is an exceptional foundation to build on the many synergies we anticipate from this acquisition, starting with the immediate expansion of our brand platform in the massive Bars and Snacks category, where we believe consumers are increasingly ‘picky’ and seek whole food, healthier bar choices as well as sustainable options.”
The transaction is aligned with Laird Superfood’s strategic goals, specifically the addition of unique and innovative daily-use products across the company’s omnichannel platform, and the acquisition of highly complementary assets such as a recurring direct-to-consumer customer base.
Laird Superfood’s strategic goals prioritise a shared product ethos supporting high athletic performance, authenticity and environmental sustainability.
Hodge explained that immediate synergies with Picky Bars include the cross-selling opportunities across both direct-to-consumer platform. “We believe these incredible products will resonate particularly well with our existing and loyal customer base, as well as the wholesale opportunity, as we intend to leverage our existing relationships of over 7,000 retail doors to accelerate placement of Picky products on shelf.”
The acquisition gives Laird Superfood a snack bar price point which supports expansion into new retail segments like convenience and drug stores.
Date published: 4 May 2021