North American online marketplace Vejii Holdings is expanding its reach with a new acquisition. Recently, the plant-based purveyor announced it has entered into a share purchase agreement to acquire VEDGEco USA, a leading online business-to-business (B2B) wholesale platform for plant-based products.
“VEDGEco launched as one of the first online wholesale platforms dedicated to providing restaurants and independent grocers with a large selection of high-quality plant-based options,” said Kory Zelickson, Chief Executive Officer of Vejii. “This meant that small business owners could at last gain access to a large selection of plant-based products and ingredients without the requirements that typical larger national distributors have in place, such as large minimum order sizes.”
Pursuant to the terms of the Purchase Agreement, stated in the release, the company will acquire 100 percent of the issued and outstanding shares of VEDGEco from the shareholders of VEDGEco. The total purchase price for the purchased shares will be $6,250,000 USD.
“We heard consistently from the brands that we serve that they were seeking to make the leap from e-commerce to grocery and foodservice distribution. This could mean shipping samples, managing broker relationships, or gaining access to those restaurants and grocers not served by the larger wholesalers,” added Zelickson. “We already work with our brand partners on a business-to-consumer (B2C) strategy through our marketplace, but now we can also help our brand partners get access to distribution in local restaurants and grocers, expanding Vejii’s capabilities from just B2C to also include B2B and foodservice.”
VEDGEco’s key personnel are expected to continue to run the operations of VEDGEco following the closing of the transaction, which was expected to close on or around December 31, 2021.
“I built VEDGEco out of a necessity, given the limited plant-based options available in the small and local grocers and restaurants where I live in Kailua, Hawaii,” said Trevor Hitch, Chief Executive Officer of VEDGEco. “Most of us are likely to have our first experience trying new plant-based products at a restaurant before purchasing those items to enjoy at home. With VEDGEco, our mission is to make plant-based options more broadly available by making them accessible to thousands of local restaurants across America. This access gives owners the ability to test products on their menu through our easy-to-use platform, without the need for long-term commitments or high, minimum order volumes. Owners can then see what works for their customer base and then return to re-order or test new options.”
This transaction is expected to drive synergies across purchasing, customer service, technology, and logistics for Vejii and VEDGEco. Vejii will also be able to leverage VEDGEco’s existing facilities in Hawaii, Northern California, and Georgia, while providing VEDGEco with access to its facilities in Texas, Wisconsin, and its soon-to-be operational third-party logistics operation in Southern California.
“The acquisition of VEDGEco will allow us to add a new revenue stream while increasing our buying power and margins with large brands, and also adding tremendous value for the brands on our platform,” said Darren Gill, Chief Operating Officer of Vejii. “As restaurants and grocers expand their plant-based offerings, we will be strategically positioned to serve them while helping plant-based brands scale their businesses by offering those brands access to national distribution through the VEDGEco wholesale platform.”
To read more about this acquisition, click here.
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