Indoor farming specialist Edible Garden has signed a non-binding letter of intent (LOI) to acquire Narayan Group, a producer of organic coconut and superfood products.
Headquartered in Slovenia, Narayan produces over 100 organic products that are certified vegan and organic under private label and proprietary brand offerings. Its products are sold primarily in Europe and the US, with a combined reach of approximately 75,000 retail stores globally, in more than 30 countries.
The company has reported over $22 million in revenue during the first nine months of 2024 and expects Q4 revenue in excess of $9.5 million, resulting in expected annual revenue of $31.5 million for the year ending 31 December 2024.
Edible Garden produces locally grown, organic and sustainable produce and products through a zero-waste controlled environment agriculture (CEA) approach. It currently operates vertically integrated greenhouses and processing facilities in New Jersey and Michigan, US, with a network of contract growers all strategically located near major US markets.
The deal will combine Narayan’s vertically integrated supply chain and European market presence with US-based Edible Garden’s CEA technology and North American distribution network. The two companies are projected to achieve combined revenues of more than $60 million in 2025.
Mario Brumat, CEO of Narayan Group, said the collaboration is expected to accelerate market expansion, particularly in the US and Canada, by delivering products that meet rising consumer demand for organic and sustainable food.
He added: “We anticipate this collaboration will drive operational efficiencies and provide cross-selling opportunities of our combined product lines throughout North America and Europe, which should provide immediate short-term and sustainable long-term shareholder value through scalable growth and increased market share in the growing market sector we are addressing”.
Under the terms of the LOI, in consideration for 100% of the share capital of Narayan DOO (Narayan Group’s parent company), Edible Garden will issue shares of Edible Garden common stock to the Narayan shareholders.
Jim Kras will continue to serve as chairman and chief executive officer at Edible, and Brumat, currently president and CEO at Narayan, will continue to head up the European operations while serving as a member of the Edible Garden board.
Kras commented: “We believe Narayan Group’s proven success and alignment with our Zero-Waste Inspired vision will allow us to build scale, expand internationally and enhance our operational efficiency. This value acquisition should position us to create meaningful value for our shareholders by meeting the growing demand for sustainable, plant-based food products.”
He continued: “Our combined strategy will be to build on Narayan’s footprint in Europe with their ability to acquire other successful product offerings and to expand those through our established and growing North American channels”.
The transaction is subject to closing conditions.
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