Local Bounti Agrees To Acquire Indoor Farming Company Pete's For ~$122M

Local Bounti Corp LOCL has agreed to acquire California-based complementary indoor farming company Hollandia Produce Group Inc, which operates under the name Pete's, for $122.5 million.
The transaction will comprise $92.5 million in cash, expected to be provided under Local Bounti's existing lending facility with Cargill, and the remaining $30.0 million payable in shares.
The deal is expected to provide Local Bounti access to Pete's existing retail customer base of more than 10,000 retail locations nationwide.
Local Bounti plans to install its patent-pending Stack & Flow Technology at Pete's three facilities, combining vertical farming and greenhouse growing technologies.
Local Bounti expects the deal to be immediately accretive. Pete's 2021 estimated net revenue totaled $22.7 million.
The company held $96.6 million in cash and equivalents as of December 31, 2021.
Price Action: LOCL shares are trading higher by 3.61% at $5.46 on the last check Tuesday.

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