Compass Diversified To Buy Fresh Hemp Foods

(RTTNews) - Compass Diversified Holdings (CODI), an owner of middle market businesses, on Monday said it has agreed to buy Fresh Hemp Foods Ltd. ("Manitoba Harvest").

Compass said the purchase price for Manitoba Harvest is based on a total enterprise value of C$132.5 million and will also include working capital and certain other adjustments upon closing.

The deal is expected to close in the next 45 days.

Headquartered in Winnipeg, Manitoba, Manitoba Harvest focuses on branded, hemp-based foods. Manitoba Harvest's products are currently carried in about 7,000 retail stores across the U.S. and Canada.

For the year ended November 2014, Manitoba Harvest reported net revenue of about C$37.9 million, an increase of 23.9% year-over-year. The company continued its growth in the first half of its current fiscal year, generating net revenue of about C$27.6 million for the six months ended May 2015.

CODI's initial equity ownership in Manitoba Harvest as a result of the transaction will be approximately 87% on a primary basis. Mike Fata, CEO of Manitoba Harvest; Clif White Road Investments LLC, an existing shareholder; and certain other management team members will re-invest alongside CODI.