Beanfields Acquired by Boosh Plant-Based Brands
Snack brand Beanfields has been acquired by Vancouver-based Boosh Plant-Based Brands Inc.. The deal, which was announced last week, officially closed on Wednesday.
Founded in 2011, Beanfields, makers of a range of bean-based snacks that are sold in roughly 7,000 doors nationwide, has been part of PowerPlant Ventures’ portfolio since 2017. According to Boosh, the assets acquired generated unaudited revenues of roughly $11.5 million (CA$14.6 million) in 2021.
“The Beanfields Team did an incredible job building Beanfields into a top-five brand in the category,” Jim Pakulis, CEO for Boosh, said in a press release. “They led the category with innovation and built a truly differentiated brand. Now with Boosh’s resources, infrastructure and capabilities, we expect to help Beanfields grow to its next level.”
In exchange for the assets, Boosh will issue eight million common shares to the sellers. As of press, Boosh’s stock was trading at 80 cents (CAD $1.01). The transaction will result in the creation of two new corporate shareholders in Boosh, Venture Lending & Leasing VIII, Inc. and Venture Lending & Leasing IX, Inc. Each will hold 3,830,000 of the payment shares, representing 14.14% of the outstanding common shares of Boosh.
In addition to the shares, Boosh will pay a $400,000 promissory note to the sellers. The note carries a 6% interest rate with Boosh issuing interest-only payments until the 18 month-maturity of the note. Boosh has also committed $1 million of working capital for Beanfields, $250,000 of which was financed at the transaction’s close, and the rest to be financed on or before March 10, 2022.
Pakulis told media company Proactive that Boosh will not assume a “fairly large body of debt service” that Beanfields held.
At the time of Beanfields’ acquisition in 2017, PowerPlant committed a 5% stake in the future value of the company to nonprofit Homeboy Industries, with other investors pledging an additional 10% to 50% of their own gains. Additionally, Homeboy was to receive 1% of sales every quarter.
While the brand previously declined to disclose how much it had raised from investors, SEC filings indicate roughly $4.25 million in capital over two funding rounds.
Just a few months after the acquisition, PowerPlant co-founder Mark Rampolla assumed the role of CEO, only to step down in place of CPG veteran Arnulfo Ventura roughly a year later. The company raised a series B round in February 2019 and has expanded beyond its flagship line of bean-based chips into vegan cracklins and, most recently, a Funyuns-like snack ring.
Ventura departed the company last month to head up chocolate brand Alter Eco, citing a desire to explore new opportunities.
Boosh, which was founded in 2017 by former Vancouver restaurateur Connie Marplesraised, raised $2.27 million ($2.875 million) via an IPO in early 2021. It currently offers 24 plant-based SKUs including fresh-frozen meals made with Beyond Meat, shelf stable heat-and-eat stews and sauces, and vegan mac and cheese. According to an investor deck on the company’s website, its products are sold in 440 Canadian grocers as well as online at ShopVejii.com. The company plans to expand into U.S. retailers later this year, a move it hopes will be expedited by the Beanfields acquisition.
A press release noted that Beanfields is not currently profitable but has undergone “significant restructuring measures” which Boosh plans to continue to execute against.
Beanfields’ prior deals in foodservice before the COVID-19 pandemic had “caused some challenges,” Pakulis told Proactive, adding that the “the philosophy prior to COVID with the previous management was different than the philosophy others may have taken.” Boosh plans to achieve cost savings by reducing the costs associated with management roles, running the company with a more “frugal, lean” team, and by possibly changing co-packers, he said.
Currently the majority of Beanfield’s sales come from the natural channel, Ventura previously told NOSH. The company said in a press release that it hopes to expand the brand further into the club channel and conventional retailers.
In the past year, Boosh has also acquired three Canadian brands: Vegan Canteen (plant-based powdered cheese), Salt Spring Harvest (vegetable-based pate and dips), and Pulse Kitchen (plant-based, gluten free cheese).
