Laird Superfood has announced its acquisition of Navitas Organics in a cash deal valued at $38.5 million. This strategic move, confirmed by Laird Superfood’s CEO Jason Vieth, is part of the company’s effort to expand its footprint in the functional nutrition sector. The transaction is set to be financed through a $50 million convertible preferred equity investment from Nexus Capital Management.
The acquisition is expected to close in the first quarter of 2026, pending customary approvals, including shareholder consent. Vieth characterized this acquisition as a “pivotal step” in enhancing Laird Superfood’s capabilities and product offerings.
Financial Overview and Strategic Rationale
Financially, Navitas has demonstrated strong performance, generating nearly $36.4 million in revenue in 2024. It has established a diverse distribution network across natural and conventional grocery stores, club channels, and e-commerce platforms. Vieth noted that Navitas achieved a gross margin of 32.7% in the same year, indicating solid profitability and a business model growing in double digits.
Laird Superfood itself reported over $43 million in net sales for fiscal 2024, with expectations of a 15% increase in net sales for 2025. The combination of both companies is projected to create a pro forma annual revenue base of approximately $80 million for 2024, making the transaction “immediately accretive.”
Operational Synergies and Future Expansion
Vieth highlighted potential operational benefits from the merger, noting that Navitas has a more developed wholesale business than Laird Superfood. This presents an opportunity for Laird to leverage Navitas’ existing relationships and learn from its approach in the wholesale channel. Conversely, Laird Superfood has a stronger direct-to-consumer (DTC) e-commerce presence, particularly on platforms like Amazon. Vieth described Navitas’ Amazon presence as “nice” but indicated it is still developing, suggesting that Laird’s experience could enhance Navitas’ e-commerce performance.
When asked about further acquisitions, Vieth stated that Laird plans to maintain a broad focus on potential targets in the functional foods sector, particularly premium products with functional benefits. He emphasized a flexible integration timeline while acknowledging that both companies are of similar size and operational complexity.
As the merger process unfolds, Vieth anticipates a brief pause before pursuing additional acquisitions. He views the current market landscape as an advantageous moment for growth and innovation, with plans for continuous evaluation of new opportunities.
Investors can expect further updates, including detailed financial information and an investor presentation, around the time Laird Superfood files its proxy in January. The acquisition of Navitas Organics is a significant move for Laird Superfood as it aims to build a more comprehensive portfolio in the health and wellness sector.
