Where Food Comes From (WFCF) has acquired a 60% stake in California based SureHarvest for nearly $2.8m in a cash-cum-stock deal.
Based in Colorado, WFCF is a North American food verification company whose controlling stake in an agri-food sustainability solution provider SureHarvest includes $1.1m in cash and issuance of 850,852 shares of its common stock to the latter.
Additionally, WFCF holds the right of first refusal on the remainder of SureHarvest’s stock.
The acquisition is set to give patented sustainability software solutions to WFCF that cover over 2,200 agri-food operations such as growers, shippers, packers, wineries, trade associations and processors.
WFCF chairman and CEO John Saunders said: "This is a highly strategic and complementary acquisition, as both companies aim to create a smarter, more transparent food system.
"In addition to greatly expanding our geographic footprint into prolific West Coast growing areas, this move broadens our solutions portfolio, commodity coverage and patent portfolio. SureHarvest also brings a highly skilled staff and a business model that delivers more recurring and predictable revenue streams.”
WFCF’s commodity reach is expected to expand and also diversify through the addition of premium specialty crops like wine grapes, leafy greens, almonds, mushrooms, cut flowers and hazelnuts among other fresh produce following the acquisition.
SureHarvest, which has offices in Soquel and Modesto in California, is likely to boost $1.5m revenue annually to its new parent company through its sustainability and farming MIS solutions, certification and compliance management among other professional services.
SureHarvest president and CEO Dr. Jeff Dlott said: "We have invested heavily in our technology and solutions suite with an emphasis on high value specialty crops. Where Food Comes From is the ideal partner to help us accelerate our market penetration and protect and leverage our valuable IP portfolio."
The company’s customers include Almond Board of California, the Oregon Hazelnut Marketing Board, Protected Harvest, California Sustainable Winegrowing Alliance, Washington Association of Wine Grape Growers and California Cut Flower Commission.