In a strategic move aimed at enhancing its portfolio, US-based fresh-produce supplier Edible Garden has announced plans to acquire The Narayan Group, a prominent European supplier of oils and pulses. This potential acquisition aligns with emerging trends in the food and beverage industry, particularly the growing demand for sustainable, organic food options.
Edible Garden has entered into a non-binding letter of intent that outlines the intention to “purchase the outstanding share capital” of Narayan. Founded in Slovenia, Narayan specializes in supplying organic coconut products, spices, pulses, and grains, catering to major European retailers such as Aldi and Lidl.
Operating within the Nasdaq-listed Edible Garden, the company focuses on controlled environment agriculture. Its sales network spans across stores in the United States, the Caribbean, and South America, supported by vertically-integrated operations based in New Jersey and Michigan. In addition to fresh produce, Edible Garden also markets condiments and pickles, positioning itself as a versatile player in the food and drink business.
Jim Kras, CEO of Edible Garden, stated: “This value acquisition should position us to create meaningful value for our shareholders by meeting the growing demand for sustainable, plant-based food products. We believe this transaction will provide us with immediate value, allow us to introduce Narayan’s products into the North American market and provide a much stronger base to grow in the future.”
The proposed acquisition will see Edible Garden issue shares to Narayan’s investors, pending completion of due diligence by both parties. Expectations indicate that a majority of the fully diluted outstanding shares of Edible Garden common stock at closing will be allocated to Narayan shareholders. Furthermore, the letter of intent specifies that, in compliance with Nasdaq requirements, a majority of Edible Garden’s board members will be nominated by Narayan shareholders or their affiliates. Kras will retain his roles as chairman and CEO.
Mario Brumat, president of Narayan, will oversee the newly formed group’s European operations and join the Edible Garden board. He expressed enthusiasm for the merger, stating: “We believe this strategic transaction with Edible Garden represents a transformative opportunity to combine Narayan’s high-growth business model and strong European market leadership with Edible Garden’s innovative CEA technology and established distribution channels in North America.”
With this acquisition, both companies anticipate accelerating market expansion, particularly in the US and Canada, by offering products that align with evolving food and drink consumer trends focused on organic and sustainable offerings. This move not only positions Edible Garden for future growth but also enhances its competitive edge in the ever-evolving food and beverage market.