Laird Superfood (NYSEAMERICAN: LSF) has announced a definitive agreement to acquire Navitas LLC, the parent company of the Navitas Organics brand, in a cash transaction valued at $38.5 million. CEO Jason Vieth described the acquisition as a significant milestone in Laird Superfood’s efforts to develop a diversified platform within the functional nutrition sector. The deal is set to be financed through a $50 million convertible preferred equity investment from Nexus Capital Management, which also includes an option for Laird to access an additional $60 million for future strategic initiatives.
Both the Navitas acquisition and the Nexus investment are expected to close in the first quarter of 2026, pending customary approvals, including shareholder consent. This strategic move is anticipated to enhance Laird Superfood’s market presence and financial performance.
Strategic Rationale Behind the Acquisition
In the past year, Navitas generated approximately $36.4 million in revenue, establishing a distribution network across various channels, including natural and conventional grocery stores, club retailers, and e-commerce platforms. Vieth highlighted Navitas’ strong profitability, citing a gross margin of 32.7% for 2024 and characterizing the business as experiencing double-digit growth.
Laird Superfood reported net sales exceeding $43 million for fiscal 2024 and anticipates a 15% increase in net sales for 2025. The combination of Laird and Navitas is projected to create a pro forma annual revenue base of approximately $80 million for 2024, making the transaction immediately accretive to Laird Superfood.
Vieth expressed enthusiasm about integrating the Navitas team, led by CEO Ira Haber, into Laird Superfood’s operations, viewing this acquisition as a pathway to expanding a more comprehensive portfolio of health and wellness brands.
Operational Synergies and Market Opportunities
During a recent Q&A session, Vieth noted that Navitas boasts a well-established wholesale business, presenting an opportunity for Laird to learn from their successful strategies while also enhancing its own wholesale presence. On the other hand, Laird Superfood has cultivated a robust e-commerce platform, particularly in direct-to-consumer sales, and has significant experience on Amazon. Vieth described Navitas’ presence on the platform as “nice” but still emerging, suggesting that Laird’s expertise could boost Navitas’ e-commerce growth.
The alignment of customer bases between the two brands is expected to facilitate cross-selling opportunities, further driving revenue growth.
Vieth addressed inquiries regarding Laird’s future acquisition strategy, stating that the company remains open to exploring potential targets in the functional foods space, especially those offering premium, value-added products with functional benefits. He clarified that the portfolio would predominantly consist of shelf-stable products while maintaining an interest in expanding into functional beverages.
Vieth acknowledged that while there may be a brief pause following the completion of the Navitas transaction, the company views the current market conditions as favorable for pursuing additional acquisitions. Investors can anticipate further updates, including detailed financial information and an investor presentation, as Laird prepares to file proxy materials in January.
Founded in 2015 by big-wave surfer Laird Hamilton, Laird Superfood specializes in plant-based superfood and functional beverage products. The company is known for its innovative offerings, including creamers, coffees, and hydration mixes, all designed to meet the growing consumer demand for clean-label, nutrient-rich alternatives. By leveraging premium ingredients such as coconut milk and functional mushrooms, Laird Superfood aims to enhance energy, focus, and overall nutritional support for its customers.
