Manitoba Harvest Hemp Foods has entered an agreement to be bought by an American investment company for C$132.5 million.
Compass Diversified Holdings (CODI), a publicly-traded company that “owns and manages a diverse family of established North American middle market businesses,” will acquire an approximate 87 percent ownership stake in the Winnipeg-based hemp food business.
Manitoba Harvest was founded following the legalization of industrial hemp in Canada in 1998. The company contracts hemp acres and purchases seed directly from producers, turning it into four main hemp-based food products. As of last year, Manitoba Harvest held an estimated 60 percent share in the hemp food market.
Related: Healthy Food & Healthy Living a Key Driver to Hemp’s Popularity
Net revenues for Manitoba Harvest grew by almost 24 percent in 2014, reaching approximately C$37.9 million. In the first six months of fiscal 2015, the company reports net revenue has already reached C$27.6 million.
Mike Fata, one of the founders and the CEO of Manitoba Harvest, will remain as CEO and is one of several existing shareholders that are reinvesting in the business.
“The acquisition of Manitoba Harvest by CODI is an exciting moment in our company’s history,” said Fata on Monday. “With CODI’s proven history of supporting and growing niche market leaders, we are confident that we can further grow market share and continue to offer new innovative hemp-based food products to our customers. As our market continues to rapidly develop and consumers embrace the nutritional benefits of our products, with the added support of CODI, we will be in a strong position to accelerate our long-term growth potential.”
The deal is expected to close within the next 45 days.