Vertical-farming business AeroFarms has been acquired by a unit of the family-run investment firm Palm Ventures.
Virginia-based AeroFarms, which grows leafy greens in a controlled indoor environment, said yesterday (11 June) the move “significantly reduces AeroFarms' debt, prioritises sustainable growth and long-term profitability”. Financial terms were not disclosed.
AeroFarms also has a new management team led by former Kraft Heinz executive Gustavo Burger as the CEO.
Bradley Palmer, the chairman and founder of Palm Ventures, said in a statement: "Consumers are choosing foods that naturally pack higher nutritional value into every bite. Gustavo Burger brings decades of world-class experience, and our job is to support his team as they deliver on that promise.”
The business filed for Chapter 11 bankruptcy in 2023 after facing “significant industry and capital market headwinds”.
However, it emerged from bankruptcy later that year under Molly Montgomery, a partner at investor Grosvenor Food & AgTech who became executive chair and CEO.
The investor partnered with Doha Venture Capital in the asset-purchase agreement that resolved the proceedings.
AeroFarms has since faced difficulties. In December, the company filed a WARN notice indicating it would close its Ringgold indoor farm in Danville and terminate 173 jobs.
The notice cited failed efforts to raise new financing and said its largest investor had unexpectedly “decided to withdraw any further financial investment”.
Nevertheless, AeroFarms confirmed in December it was “continuing to operate” after securing funding from an undisclosed investor.
Just Food has asked AeroFarms if the undisclosed investor was Palm Ventures and for details on its current production assets, debt levels and profits.
AeroFarms products are stocked in about 2,000 retail outlets nationwide.
Burger said: "AeroFarms is built on the most advanced aeroponic platform in the food industry, a category-defining product, and retail partnerships with the best names in the business.
"My focus is to build on that foundation with the operational rigour it deserves, and create a business that performs as well as its products."
