Vejii Holdings Ltd said it has inked a deal to acquire Frozenly Limited Inc, which would expand the plant-based company’s footprint into the UK.
Frozenly owns and operates MightyPlants.com, which provides direct-to-consumer logistics and delivery for plant-based foods across the country.
Vejii said that Frozenly – like Vejii – acts as an agent for brands, providing D2C order fulfillment services and sample distribution through its inventory consignment model.
With sales expected to top £1 billion by 2024, Vejii told shareholders that the UK represents “one of the strongest global markets” in the plant-based food industry and a good opportunity for expansion.
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"We believe that the acquisition of Frozenly by Vejii would enable local brands that Frozenly already serves to expand across Vejii's US and Canadian platforms, and Vejii would be able to leverage its brand partners into the UK market as well, we are excited to bring our business together and leverage the natural synergies that already exist," said Kory Zelickson, CEO of Vejii in a statement.
Launching into the UK was part of Vejii’s plan since the beginning, COO Darren Gill added.
“We believe that the acquisition of Frozenly and the leveraging of Frozenly's digital platform and distribution network in the UK would be a critical and exciting milestone for the company as we plan our continued expansion into the European Union and other key strategic geographies," Gill said.
Frozenly to become wholly-owned subsidiary
Under the terms of the letter of intent, Vejii will purchase Frozenly shares for £2 million, payable in two tranches over a three-year period in Vejii shares and subject to earn-out milestones based on Frozenly’s financial performance.
Frozenly will become a wholly-owned subsidiary of Vejii.
Strong investor backing
Frozenly is backed by an established base of strategic investors, including the Dismatrix Group co-founded by investors Miray Zaki and Sebastiano Cossia Castiglioni.
Zaki intends to join Vejii’s advisory board, Vejii told investors.
"We are very supportive of bringing these two great businesses together, and as investors see great potential for the combined business reaching global size and scale, I look forward to working with Vejii's team as an advisor and future board member to support its ongoing growth,” Zaki said.
Headquartered in Kelowna, BC, Vejii is a unified digital marketplace and fulfillment platform featuring thousands of plant-based and sustainable-living products from a growing list of hundreds of vendors.
Contact Angela at angela@proactiveinvestors.com
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