The acquisition of Nutrition Bar expands production capacities and accelerates expansion into ambient products
Closing of the transaction in the fourth quarter of 2021
PARAMOUNT, Calif., October 26, 2021 (GLOBE NEWSWIRE) – Tattooed Chef, Inc. (Nasdaq: TTCF) (“Tattooed Chef” or the “Company”), a leader in plant-based foods, today announced it has joined an agreement to acquire Belmont Confections, Inc. (“Belmont”), a private label food bar co-manufacturer, for approximately $ 18 million in cash and stock. The transaction was unanimously approved by Tattooed Chef’s board of directors and the acquisition is expected to close in the fourth quarter of 2021.
Belmont, based in Youngstown, Ohio, specializes in the development and manufacture of snack and nutritional bars. The 47,000 square meter facility already has the equipment to manufacture many different types of bars and now, along with the innovation of Tattooed Chef, enables the company to become a leader in the bar sector.
The transaction allows Tattooed Chef to further diversify its product offering and enter the global herbal bar category valued at $ 10 billion. This is in line with Tattooed Chef’s growth strategy of developing more ambient and cooling products, opening up more shelf space, and expanding its channel penetration beyond retail and club so that consumers can enjoy Tattooed Chef’s products at home and on the go.
“We are pleased to announce the acquisition of Belmont and we look forward to welcoming George Tsudis and his team to the Tattooed Chef family,” said Sam Galletti, President and CEO of Tattooed Chef. “Belmont is exactly the kind of company we were talking about in terms of a company that is expanding both manufacturing capacity and capabilities. This acquisition will also allow us to control the supply chain for the brand and ensure that Tattooed Chef’s products are always available by controlling our own destiny. Belmont is also accelerating Tattooed Chef’s expansion into a new category in ambient and cooling products. We believe this transaction will open up more distribution channels including convenience stores, vending machines, medicines and dollars and more. We believe the Belmont facility, at full capacity, can generate over $ 100 million in annual sales over the next two to three years. “
Sarah Galletti, Chief Creative Officer and “The Tattooed Chef,” added, “We see an opportunity to leverage our innovation capabilities to bring great tasting, plant-based options to the bar sector. We believe we can design and launch new types of bars to change a category that needs more innovation and exciting product development. Consumers are looking for more convenient ways to better eat and we believe that Tattooed Chef branded herbal bars will resonate with our consumer base. ”
About the tattooed chef
Tattooed Chef is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods. Tattooed Chef signature products include ready-to-cook bowls, zucchini spirals, rice cauliflower, acai and smoothie bowls, and cauliflower pizza crusts, which are also available in the freezer sections of leading US national grocery and club stores such as the E- Tattooed Chef’s commerce site. Understanding consumer lifestyle and food trends, dedication to innovation and in-house manufacturing enable Tattooed Chef to continually introduce new products. Tattooed Chef provides the growing group of plant-based consumers as well as the mainstream market with great tasting and chef-created products. Further information is available at www.tattooedchef.com.
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About Belmont Confections, Inc.
Belmont Confections, based in Youngstown, Ohio, is a spin-off from a Pittsburgh-based family business. Belmont specializes in the development and manufacture of private label food bars and has grown steadily since it was founded in 2007. For almost 30 years, the owner’s father, George Tsudis, Spiro, worked for DL Clark Candy Co. in Pittsburgh, the former maker of the Clark bar. Spiro Tsudis left Clark in 1985 to start Penhurst Candy Co., which produced private branded candy for national distributors. Belmont is proud to be a leading provider of private label protein and health bars in the United States and beyond. Belmont’s focus on manufacturing products with the highest quality and safety standards drives it to consistently exceed its customers’ expectations.
Certain statements in this press release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. In this press release, words such as “estimates,” “projected,” “expected,” “Anticipates”, “forecast”, “planet”, “intends”, “believes”, “seeks”, “can”, “will”, “should”, “future”, “suggest”, “trend”, “acceleration” ”,“ Expansion ”,“ New ”,“ Lever ”,“ Continuation ”,“ Opportunities ”,“ Next ”,“ Increase ”,“ Over ”,“ Potential ”,“ Growth ”,“ Pipeline ”,“ Guide ”and Variations in these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Tattooed Chef and which could lead to actual results or material material results differ from those discussed in the forward-looking statements. Important factors that could affect actual results or results include: uncertainty as to the ultimate success of the Tattooed Chef e-commerce platform; the need to demonstrate Tattooed Chef’s ability to build brand awareness and continue to bring innovative products to market; continued acceptance of Tattooed Chef branded products by new retail customers; The tattooed chef’s ability to increase the number of stores and outlets; the outcome of legal proceedings that may be initiated against Tattooed Chef; successful completion of the Belmont Confections acquisition and Tattooed Chef’s ability to effectively and efficiently integrate the Belmont Confections business; Competition and the company’s ability to grow and manage growth profitably; expected but unpredictable increased costs associated with our transition to a public company; and other risks and uncertainties disclosed from time to time in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”), including those filed with the Securities and Exchange Commission (the “SEC”) listed therein under “Risk Factors,” and other factors identified in previous and future filings with the SEC, available at www.sec.gov. Some of these risks and uncertainties may be exacerbated by the COVID-19 outbreak. Tattooed Chef assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or for any other reason, except as required by law.
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