US consumer goods company Verus International, which also trades as Verus Foods, has announced last year’s acquisition of Eliot’s Nut Butters has backfired.
In a filing with the US Securities and Exchange Commission, dated 1 February, Verus said it had entered a “mutual rescission and release agreement” with Eliot’s following a deal reached in September for an undisclosed sum.
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The filing read: “The parties entered into an asset-purchase agreement dated September 1, 2020, and contracts described therein, including without limitation an assignment and assumption agreement, bill of sale, and employment contract.
“The parties acknowledge that Eliot’s is not an appropriate fit with Verus and parties would like to continue their separate ways; and the parties hereby mutually agree to rescind the original contracts in order to return the parties to their respective positions before the original contract’s effective date.”
just-food has approached Eliot’s, which is based in Portland, Oregon, for comment but had not received a reply at the time of publication. However, it was a public holiday in the US yesterday to mark the birthday of George Washington.
Founded in 2013, Eliot’s portfolio features peanut butters in Spicy Thai, Honey Chipotle, Classic Salted, and Espresso Nib, while the company also produces Oregon Hazelnut Chocolate Spread and Everything Bagel Nut Butter. The products are sold in Whole Foods Market, Kroger, natural and speciality grocery stores, and online via Amazon and Eliot’s website.
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By GlobalDataAt the time of the deal last year, Verus said Eliot’s was on track to generate revenues of about US$400,000 in 2020 and was seeking to expand distribution into additional retail and launch new products.
Verus CEO Anshu Bhatnagar said last September: “Eliot’s is an outstanding, highly-rated brand that can benefit from our growing distribution network, so we see the potential for some organic sales acceleration simply through wider distribution.
“We expect to tap into Eliot’s expertise in online sales, but we are also very excited about new products in development that we expect to open a greater number of retail doors. This acquisition provides us an entry point into some speciality and healthier food categories where we would like to expand in the future.”
