SusGlobal Energy, the developer of SusGro, an organic liquid fertilizer, announced that its wholly-owned subsidiary, SusGlobal Energy Canada has entered into a non-binding letter of intent to acquire a soil media, plant nutrients, and amendments producer approved for organic use and specifically formulated for producing high-quality fruit and flowering crops for an aggregate purchase price of US$15,701,885 (CA$20,000,000).
2020-2021 saw a record number of new gardeners enter the market led by generation Xers and millennials, two age groups very concerned about what is in the food they eat. A Dalhousie University School of Management and School of Agriculture study published on MDPI of 2020 gardening trends found: "Over 50 percent of people grow food at home to reduce their environmental impact. 66.9% of long-time gardeners and 56.1% of new gardeners agree that homegrown food was healthier than food purchased from food retailers."
As a condition of the acquisition, SusGlobal Canada shall make a US$3,925,471 (CA$5,000,000) investment into the target and provided a US$157,018 (CA$200,000) deposit on March 8, 2022. SusGlobal Canada is preparing definitive transaction documents including a Purchase and Sale Agreement for all of the shares of Target. If the closing of the Acquisition does not occur by an agreed upon date, the Deposit shall be refunded to SusGlobal Canada.
"This potential acquisition is an example of SusGlobal delivering on our commitment to pursue strategic and accretive acquisitions to continue growing our business," said Marc Hazout, founder, chairman, and CEO of SUSGLOBAL.
"The timing of this potential acquisition, which we expect to close in the second quarter of this year, fits perfectly with our current schedule for completing the development of our Hamilton facility. We are excited about the opportunities that lie ahead with this potential acquisition."