Compass Diversified Holdings, a Westport, Connecticut-based owner of middle market businesses, on Monday announced that on June 4, it entered into an agreement to acquire Fresh Hemp Foods Ltd. ("Manitoba Harvest"). The acquisition is expected to close in the next 45 days, subject to customary closing conditions.
Headquartered in Winnipeg, Manitoba, Canada, Manitoba Harvest is a pioneer and global leader in branded, hemp-based foods. The company's products are the fastest growing in the hemp food market and among the fastest growing in the natural foods industry.
Manitoba Harvest's award-winning products are currently carried in about 7,000 retail stores across the U.S. and Canada. For the year ended November 30, 2014, Manitoba Harvest reported net revenue of approximately C$37.9 million, an increase of 23.9 percent year-over-year. The company continued its rapid growth in the first half of its current fiscal year, generating net revenue of approximately C$27.6 million for the six months ended May 31, 2015.
The purchase price for Manitoba Harvest is based on a total enterprise value of C$132.5 million and will also include working capital and certain other adjustments upon closing. Manitoba Harvest generated net revenues of approximately C$44.9 million and Adjusted EBITDA of approximately C$6.4 million for the last twelve months ending May 31, 2015, representing year-over-year growth of 28.5 percent and 59.4 percent, respectively. The company generated Adjusted EBITDA for the six months ended May 31, 2015 of approximately C$5.0 million.