Barfresh Completes Strategic Acquisition of Arps Dairy

Rhea-AI Summary

Barfresh (NASDAQ: BRFH) completed the acquisition of Arps Dairy on Oct 7, 2025, primarily funded by an expansion of its existing line of credit to repay approximately $1.3 million of debt. The deal adds an operational 15,000 sq ft facility and a near-complete 44,000 sq ft manufacturing site in Defiance, Ohio, with production already started at the existing site.

The company reaffirmed fiscal 2025 revenue guidance of $14.5M–$15.5M and issued preliminary fiscal 2026 guidance of $30M–$35M (a 126% increase versus FY2025 high range). Arps received preliminary approval for a $2.3M government grant to support completion in 2026. Management expects the acquisition to be accretive to earnings in fiscal 2026.

Positive

• FY2026 revenue guidance of $30M–$35M (126% vs FY2025 high)
• FY2025 guidance increased to $14.5M–$15.5M
• Adds 15,000 and 44,000 sq ft manufacturing facilities
• Preliminary $2.3M government grant approved to finish construction
• Immediate production started at existing Arps Dairy facility
• Expected to be accretive to earnings in fiscal 2026

Negative

• Acquisition funded via expansion of existing line of credit
• 44,000 sq ft facility completion planned during 2026 (timing risk)
• Government grant is preliminary, not final

Insights

Strategic Finance Analyst

Acquisition expands manufacturing, more than doubles revenue guidance and is presented as accretive for fiscal 2026.

The transaction transfers ownership of two Ohio processing facilities to Barfresh, including a 15,000-square-foot operational site and a 44,000-square-foot facility nearing completion, funded mainly by a line-of-credit expansion and a $1.3 million debt repayment. Management reports production has already begun at the existing site and expects construction completion in 2026, while Arps Dairy received preliminary approval for a $2.3 million government grant to support final construction and equipment installation.

Operationally, the company says the acquisition removes third-party manufacturing fees, improves ingredient procurement, and reduces freight and cold-storage costs, which it expects will make the business profitable and accretive in fiscal 2026. The combined guidance shows fiscal 2025 revenue of $14.5 million to $15.5 million and preliminary fiscal 2026 revenue of $30 million to $35 million, a stated increase of 126% versus the high end of fiscal 2025 guidance.

Key dependencies and risks remain clearly stated: timely completion of the larger facility, realization of the $2.3 million grant, and the operational integration that eliminates third-party costs; delays or failure on any point would constrain the stated revenue and accretion claims. Watch the construction milestones through 2026, confirmation of grant funding, and quarterly reports showing realized margin improvement and absorption of manufacturing costs within reported results.

Transaction Positions Company for Accelerated Growth with Enhanced Manufacturing Capabilities and Operational Synergies

Company on Track to Deliver Fiscal Year 2025 Revenue of $14.5 Million to $15.5 Million

Acquisition Expected to More Than Double Revenue to $30 Million to $35 Million and Enhance Profitability in Fiscal Year 2026

LOS ANGELES, Oct. 07, 2025 (GLOBE NEWSWIRE) -- Barfresh Food Group Inc. (the “Company” or “Barfresh”) (Nasdaq: BRFH), a provider of frozen, ready-to-blend and ready-to-drink beverages, today announced that it has completed the previously announced acquisition of all outstanding capital stock of Arps Dairy, Inc., an Ohio-based dairy processing company. The transaction was completed primarily for approximately $1.3 million in debt repayment, funded through an expansion of the Company’s existing line of credit.

The completed acquisition immediately expands Barfresh’s manufacturing footprint with Arps Dairy’s operational 15,000-square-foot processing facility, along with a 44,000-square-foot state-of-the-art manufacturing facility that is nearing completion. Both facilities are located in Defiance, Ohio. The Company has already commenced production of certain products at the existing Arps Dairy facility and plans to complete construction at the larger facility during 2026. Arps Dairy has been preliminarily approved for a $2.3 million government grant to support the finalization of construction and equipment installation at the expanded facility. The acquisition delivers immediate operational advantages by eliminating third-party manufacturing fees, enabling more efficient ingredient procurement, reducing freight and cold storage costs through integrated operations, and providing enhanced oversight of production processes.

Riccardo Delle Coste, the Company’s Chief Executive Officer, stated, "We are pleased to complete this transformational acquisition and welcome the Arps Dairy team to the Barfresh family. This milestone marks the beginning of a new chapter in our operational evolution as we transition to an integrated manufacturing model. With production already underway at the Arps Dairy facility, we are immediately realizing the benefits of enhanced supply chain control and improved operational efficiency. The completion of this acquisition provides us with the manufacturing foundation necessary to execute against our growth plans and deliver on our fiscal 2026 revenue guidance of $30 million to $35 million. The closing of this transaction reinforces our commitment to building a scalable, profitable business model that can support long-term growth while delivering superior value to customers and shareholders alike."

As previously announced, Barfresh has increased its fiscal year 2025 revenue guidance to a range of $14.5 million to $15.5 million and has issued preliminary fiscal year 2026 revenue guidance of $30 million to $35 million, representing a 126% increase compared to the high range of fiscal year 2025 guidance. The acquisition is expected to be accretive to earnings in fiscal 2026 as the Company realizes the full benefit of its expanded manufacturing capabilities and operational cost reductions.

About Barfresh Food Group

Barfresh Food Group Inc. (Nasdaq: BRFH) is a developer, manufacturer and distributor of ready-to-blend and ready-to-drink beverages, including smoothies, shakes and frappes, primarily for the education market, foodservice industry and restaurant chains, delivered as fully prepared individual portions or single serving and bulk formats for on-site preparation. The Company’s single serving, on-site prepared product utilizes a proprietary system that uses portion-controlled pre-packaged beverage ingredients, delivering a freshly made frozen beverage that is quick, cost efficient, better for you and without waste. For more information, please visit www.barfresh.com.

Forward Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking, including statements about the Company’s commercial progress, success of its strategic relationship(s), and projections of future financial performance. These forward-looking statements are identified by the use of words such as “grow”, “expand”, “anticipate”, “intend”, “estimate”, “believe”, “expect”, “plan”, “should”, “hypothetical”, “potential”, “forecast” and “project”, “continue,” “could,” “may,” “predict,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the Company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The contents of this release should be considered in conjunction with the Company’s recent filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any warnings, risk factors and cautionary statements contained therein. Furthermore, the Company expressly disclaims any current intention to update publicly any forward-looking statements after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com

Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com

FAQ

What did Barfresh (BRFH) acquire on October 7, 2025?

Barfresh acquired all outstanding capital stock of Arps Dairy, including two Ohio manufacturing facilities.

How did Barfresh finance the Arps Dairy acquisition (BRFH)?

The acquisition was funded primarily by expanding the company's existing line of credit to repay about $1.3M of debt.

What is Barfresh's updated fiscal 2025 revenue guidance (BRFH)?

Barfresh reaffirmed fiscal 2025 revenue guidance of $14.5M–$15.5M.

What revenue does Barfresh forecast for fiscal 2026 after the acquisition (BRFH)?

Preliminary fiscal 2026 revenue guidance is $30M–$35M, a 126% increase versus the FY2025 high range.

Will the Arps Dairy acquisition affect Barfresh's production timelines (BRFH)?

Production has already begun at the existing Arps facility; completion of the larger facility is planned during 2026.

Is there government support tied to the Arps Dairy expansion (BRFH)?

Arps Dairy has preliminary approval for a $2.3M government grant to support final construction and equipment installation.

How will the acquisition impact Barfresh's costs and margins (BRFH)?

Management expects elimination of third-party manufacturing fees and reduced freight and storage costs, contributing to expected earnings accretion in FY2026.