Laird Superfood of Sisters acquires Bend’s Picky Bars for $12 million

SISTERS, Ore. (KTVZ) -- One popular Central Oregon-based healthy food-maker -- Laird Superfood of Sisters -- is acquiring another -- Bend's Picky Bars -- for $12 million, the two companies announced Tuesday.

In a news release, Laird Superfood said it entered into a definitive agreement Monday to purchase all of the equity interests of fellow Central-Oregon based Picky Bars, LLC, "innovators in the healthy snack industry focused on nutritionally balanced, real-food products to fuel performance," for $12 million in cash and stock, subject to a customary post-closing working capital adjustment.

The transaction closed simultaneously with execution. The transaction represents an acquisition multiple of approximately 1.2x estimated 2022 revenue, Laird said.

Laird Superfood, which employs over 100 people in Sisters, raised $52 million in an initial public offering last fall, providing the working capital that made the acquisition possible, The Oregonian/OregonLive reported.

Picky Bars CEO Jesse Thomas said in a posting the move will "accelerate our already strong growth by expanding our distribution, enhancing our product development, and creating even more jobs in our local community." The company was founded by professional athletes Thomas, Lauren Fleshman and Stephanie Bruce.

Laird Superfood, founded in 2015 by surfing legend Laird Hamilton, also issued a statement on the acquisition, saying in part, "We are thrilled to welcome Picky Bars into the Laird Superfood family. Founded by three incredible athletes who are true to their mission and vision, Picky Bars aligns with our core values of trust, authenticity and our ethos of prioritizing high-performance products and sustainability, not just for athletes, but for everyone in everyday life."

Here's the rest of the news release announceing the deal:

Laird Superfood said in a news release it expects the transaction to be supportive of its path to an improving gross margin profile and accretive to the net income (loss) of Laird Superfood in 2022 and beyond. In 2021, the Company does not expect the transaction to have any meaningful impact on the Company’s net income (loss) per share.

Picky Bars’ product portfolio includes the namesake Picky Bar, as well as Performance Oatmeal, Performance Granola, Pancakes and Drizzle^(TM) nut-butter, with best-in-class direct-to-consumer distribution to a loyal fanbase. Picky Bars’ direct-to-consumer platform includes the Picky Club, a monthly subscription box and loyalty program.

The transaction is aligned with Laird Superfood’s strategic goals, specifically the addition of unique and innovative daily-use products across the Company’s omnichannel platform, and the acquisition of highly complementary assets such as a recurring direct-to-consumer customer base. Laird Superfood’s strategic goals prioritize a shared product ethos supporting high athletic performance, authenticity and environmental sustainability.

Paul Hodge, Chief Executive Officer of Laird Superfood said, “We are so excited to welcome Picky Bars into the Laird family. Founded by three incredible athletes who are true to their mission and vision, Picky Bars aligns with our core values of trust and authenticity and our product ethos prioritizing high performance and sustainability, not just for athletes, but for everyone in everyday life.

"This is an exceptional foundation to build on the many synergies we anticipate from this acquisition, starting with the immediate expansion of our brand platform in the massive Bars and Snacks category, where we believe consumers are increasingly “picky” and seek whole food, healthier bar choices as well as sustainable options. Picky also has a line of Performance Breakfast products including Performance Oatmeal, Granola and Pancakes, which are exciting and additive to the Laird Superfood morning ritual.”

Hodge continued, “Other immediate synergies include the cross-selling opportunities across both direct-to-consumer platforms, as we believe these incredible products will resonate particularly well with our existing and loyal customer base, as well as the wholesale opportunity, as we intend to leverage our existing relationships of over 7,000 retail doors to accelerate placement of Picky products on shelf. Lastly, we are excited about augmenting the Laird Superfood brand platform with a snack bar price point which supports expansion into new retail segments like convenience and drug stores, further extending that brand platform to yet another new audience.”

About Laird Superfood (NYSE American: LSF)

Laird Superfood, Inc. creates award-winning, plant-based superfood products that are both delicious and functional. The Company's products are designed to enhance your daily ritual and keep consumers fueled naturally throughout the day. The Company was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested, and made with real ingredients. Shop all products online at lairdsuperfood.com and join the Laird Superfood community on social media for the latest news and daily doses of inspiration.

About Picky Bars

Picky Bars creates real food products to “fuel the pursuit of life’s potential.” Founded in 2010 in the home kitchens of professional endurance athletes, Jesse Thomas, Lauren Fleshman, and Stephanie Rothstein Bruce, Picky Bars were created to provide a nutritionally balanced, real-food fuel option that is easy to digest and built for performance. Since then, the product line has expanded to include Performance Oatmeal, Granola, Pancakes, and a nut butter topping called Drizzle. Through wholesome products, great service, and some quirky humor, Picky Bars strives to support and inspire athletes of all levels to reach for their goals and live life to the fullest. All products are designed and tested on the trails around Picky HQ in Bend, Oregon.