Eshbal Functional Food has signed a letter of intent to buy a majority stake in US low-carb and gluten-free business Dare to Be Different Foods (D2BD).
According to Canada-listed Eshbal, the acquisition is subject to the parties entering into a definitive agreement, including approval by the TSX Venture Exchange.
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Based in New York, D2BD was founded in 2012 and manufactures low-carb and gluten-free frozen products, including crusts, crisps and gnocchi that are formulated with broccoli and cauliflower.
Eshbal plans to pay a mix of cash and shares for its planned 55% stake in D2BD.
The company said it may put up more shares in itself if D2BD meets certain revenue thresholds.
The amount of cash payments and number of Eshbal shares it issues will be determined after due diligence is completed.
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By GlobalDataThe news comes as Eshbal, which is primarily based in Israel but has a North American office in Vancouver, has named Avi Markus as its new chief commercial officer of North America.
In the new role, Markus will oversee commercial operations that include sales, distribution, partnerships and business development. His most recent role was at Canada-based infant-formula business Else Nutrition.
Earlier this month, Eshbal signed a letter of intent to acquire Gluten Free Nation, a Texas-based commercial baker of gluten-free bread and baked goods.
Eshbal said at the time that they are “excited about the potential to integrate Gluten Free Nation’s product line and leverage its customer relationships to further expand Eshbal’s North American presence”.
While the company supplies foodservice and retail in Israel, it recently expanded into North America following its reverse takeover with Canada-based Hakken Capital Corp. where it also gained a listing on the TSX Venture Exchange.
According to Eshbal’s most recent financial report, the firm generated an annual revenue of approximately $11.4m by the end of 2024.
