Planet Organic to acquire California Chain and build growth platform in the Western United States
09:15 EST Tuesday, February 19, 2008
Planet Organic Health Corp. - (TSX Venture Exchange - POH).
EDMONTON, Feb. 19 /PRNewswire-FirstCall/ - Planet Organic Health Corp ("Planet Organic"), Canada's largest natural foods retailer, today announced that they have signed a Letter of Intent whereby Planet Organic will acquire 100% of the shares of New Leaf Community Markets ("New Leaf") for (US) $9,750,000.
New Leaf is a leading natural foods retailer in Northern California, with three locations in and around the city of Santa Cruz. New Leaf generated revenues of (US)$26.4 million and EBITDA of (US)$1.5 million in fiscal 2007 (unaudited). In fiscal 2008, there are a number of growth initiatives currently underway including one store renovation and two selected new store locations, signifying significant near-term growth opportunities in revenues and cash flow.
The acquisition will be funded by the issuance of 1,200,000 shares of Planet Organic at an issuance price of $2.50, with the balance of $6,750,000 to be paid in cash. Planet Organic currently has an available balance of approximately $10.0 million on its existing credit line. The acquisition is scheduled to close in April.
"We are extremely excited to work with a leading management team in expanding New Leaf throughout the western United States," reports Darren Krissie, Planet Organic's CFO. "I am very pleased that the New Leaf team has decided to join the Planet Organic organization. New Leaf Community Markets is an outstanding company in terms of its quality organic and natural products, consumer education, and commitment to the community and the environment."
"We have served our markets at the highest level for over 20 years and will continue to offer market-leading quality and service to our customers. Together with Planet Organic, we will be able to accelerate our growth plans in existing and new markets and see significant opportunities in California in the next few years," said Scott Roseman, New Leaf founder and co-owner.
'Good Food, Good for You, Good for the Earth.' That's been the company's motto for the past 15 years. Planet Organic Markets sell only 100% certified organic produce, all-natural groceries, a healthy deli selection, organic meats, fair trade coffee and chocolates as well as all-natural supplements and personal-care products.
To find our more, please visit: www.planetorganic.ca
ABOUT PLANET ORGANIC
Planet Organic Health Corp. (TSX-V: POH) is a natural products industry company, comprising manufacturing, distribution and retail. Planet is listed on the TSX Venture Exchange as a Tier One company. Planet operates eight natural food supermarkets throughout Canada under the Planet Organic Market banner and eleven natural food supermarkets in the U.S. under the Mrs Green's Natural Markets banner. The Company also operates 48 natural health outlets under the Sangster's Health Centre banner and seven natural health outlets under the Healthy's banner. Another POHC company, Trophic Canada is the country's leading manufacturer of natural supplements. The Company has a total of 63 stores throughout Canada and 11 in the U.S.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE Planet Organic Health Corp.
For further information: Planet Organic Health Corp., Darren Krissie, VP Corporate Development, CFO, (780) 719-4667; Bob Beaty, The Howard Group Inc., Toll Free: 1-888-221-0915, Info@howardgroupinc.com, www.howardgroupinc.com
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