Business
EDIBLE GARDEN Signs Non-Binding Letter of Intent to Acquire NARAYAN GROUP to Expand into the European and North American Markets
BELVIDERE, NJ, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in
About this update from Edible Garden Ag Incorporated
[{"type":"text","content":"BELVIDERE, NJ, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic, and sustainable produce and products, today announced the signing of a non-binding letter of intent (LOI) to purchase the outstanding share capital of Narayan d.o.o. and its subsidiaries (“Narayan Group”), a prominent producer of organic coconut and superfood products. The Narayan Group, headquartered in Slovenia, brings established products characterized by consistent revenue growth and EBITDA1 with significant market reach that has achieved over $22 Million in revenue2 during the first nine months of 2024. Narayan expects fourth quarter revenue in excess of $9.5 Million, which would result in expected annual revenue of approximately $31.5 Million for the year ending December 31, 2024.3 With Narayan’s vertically integrated supply chain and leadership in the European market combining with Edible Garden’s innovative CEA technology and product placement within their North American distribution network on a combined basis, the Narayan Group and Edible Garden expect to achieve combined revenues in excess of $60 Million in 2025.4 The Narayan Group has demonstrated consistent positive EBITDA1, with net sales revenue growing steadily from $12.1 Million in 2020 to $26.9 Million in 2023. The Narayan Group generated net income of $0.9 Million and EBITDA1 of $3.0 Million in 2023 and is expected to report increased revenues and EBITDA1 for fiscal 2024. Mario Brumat, CEO of Narayan Group, stated, “We believe this strategic transaction with Edible Garden represents a transformative opportunity to combine Narayan’s high-growth business model and strong European market leadership with Edible Garden’s innovative CEA technology and established distribution channels in North America. Together, we expect to be able to accelerate market expansion, particularly in the U.S. and Canada, by delivering products that meet rising consumer demand for organic and sustainable food products. 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 ...