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

• Local Bounti Corp (NYSE: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.