Innovative Food Holdings, Inc. Announces Progress Against Its Strategic Plan

Rhea-AI Summary

Innovative Food Holdings, Inc. (IVFH) announced key progress against its strategic plan, including the sale of its building in Bonita Springs, FL, listing of its e-commerce fulfillment center for sale or lease, exploration of strategic alternatives for the e-commerce business, sale of its Grow Brand Management consulting business, and the sale of its minority stake in Curdbox.com.

Financial Analyst

Innovative Food Holdings, Inc.'s announcement of significant strategic actions suggests a business restructuring or portfolio optimization strategy. The sale of the Bonita Springs building and the listing of the e-commerce fulfillment center indicate a potential shift in capital allocation or operational focus. This could signal a move towards liquidity or a reallocation of resources towards more profitable or core business segments.

The engagement of Sampford Advisors Inc. to explore strategic alternatives for the e-commerce business hints at a major strategic pivot or the potential sale of this segment. This could be in response to underperformance, market competition, or a strategic decision to streamline operations. The letter of intent to sell the Grow Brand Management consulting business further supports the narrative of divestiture and focus on core competencies.

The sale of the minority stake in Curdbox.com, while smaller in scale, aligns with the broader theme of divestment. For investors, these moves could indicate a near-term focus on improving the balance sheet and profitability. However, it's crucial to evaluate the financial terms of these transactions, the strategic rationale, and the impact on the company's long-term growth trajectory. While divestitures can provide immediate financial benefits, they may also reduce the company's future revenue streams and market presence.

Overall, these developments warrant close monitoring as they will likely affect the company's financial health and strategic direction. Investors should consider the potential benefits of a leaner, more focused operation against the risks of narrowing the company's market scope and the potential loss of synergies between business units.

Mergers & Acquisitions Consultant

The engagement of a Technology M&A advisory firm and the announcement of multiple asset sales, including real estate and business segments, indicate that Innovative Food Holdings, Inc. is proactively managing its portfolio. The decision to sell the Grow Brand Management consulting business to its current manager suggests an insider's belief in the business's standalone value and could be a positive sign of its viability.

From a mergers and acquisitions perspective, the company appears to be streamlining operations and possibly preparing for a strategic shift or consolidation. The sale of assets often provides companies with capital to invest in growth areas or to pay down debt, which can be attractive to investors if managed effectively. However, it is also important to consider the potential disruption to operations and the loss of diversified income sources.

Investors should analyze the terms of these deals once disclosed, as they will provide insight into the company's valuation of its assets and the effectiveness of its strategic decisions. If the assets are being sold at a premium, this could reflect well on the company's asset management and market positioning. Conversely, sales at a discount may raise concerns about the necessity of liquidation and the health of the underlying business.

Real Estate Investment Analyst

The sale of the company's building and the listing of its e-commerce fulfillment center are of particular interest from a real estate investment perspective. These properties could be significant assets on the company's balance sheet, and their sale or lease could have material financial implications.

Real estate transactions can be complex, and the terms of the deals, including price and any potential leaseback arrangements, will be critical in assessing their impact. The involvement of CBRE, a reputable commercial broker, suggests a professional approach to the real estate divestment process.

Investors should consider the current real estate market conditions in Bonita Springs, FL, and Mountain Top, PA, as these will influence the financial outcome of the transactions. A strong real estate market could mean favorable terms for Innovative Food Holdings, Inc., while a weak market might necessitate concessions and impact the expected financial uplift from these sales.

BONITA SPRINGS, Fla., Dec. 18, 2023 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH” or the “Company”), a national seller of gourmet specialty foods to Professional Chefs and Home Gourmets, today announced five key elements of progress against its strategic plan, which was discussed at its Q3 earnings call, held on November 9, 2023. They are as follows:

• First, the Company has received and accepted an offer to purchase its building in Bonita Springs, FL. The sale is expected to close in approximately 60 days.
• Second, the Company has listed its e-commerce fulfillment center in Mountain Top, PA for sale or lease through CBRE, a national commercial broker.
• Third, the Company has entered into an agreement with Sampford Advisors Inc., a Technology M&A advisory firm, to run the process of exploring strategic alternatives for the Company’s e-commerce business.
• Fourth, the Company has signed a letter of intent to sell its Grow Brand Management consulting business to the current manager of that entity. The deal is expected to close in the next 30-60 days.
• Fifth, the Company has entered into an agreement to sell off its minority stake in a small ecommerce startup called Curdbox.com, and expected to close by the end of the year.
  

“I’m excited about these strategic moves and I am optimistic that they will each have a positive impact on the company’s financial performance and focus,” stated Bill Bennett, the Company’s Chief Executive Officer. “As we discussed in our Q3 conference call, we expect the sale of our Bonita Springs building to net approximately $1.9 million in cash, after fees and net of debt, and we expect the Mountain Top property to net us an additional $5-9 million in cash, net of debt and fees. We are selling Grow Brand Management for $225,000, inclusive of working capital, and we expect an annual revenue impact to the Company of approximately $1 million, with no material impact to profit. The sale of our interest in Curdbox.com is for an undisclosed amount, and we do not expect the sale to impact revenue or profit.”

Mr. Bennett continued, “As we progress through my first year with the company, it’s critical that we continue to make progress towards our ‘100/10 Plan’, by achieving our first $100 million in revenue and $10 million in adjusted EBITDA. We are highly focused on first stabilizing the company, then reallocating resources, capital, and focus to our core, profitable business. Between our Artisan Specialty Foods distribution business unit, and our Food Innovations drop ship business unit, I continue to be excited by the significant new customer and channel opportunities we are pursuing with the additional focus and resources we are unlocking for the team. We also continue to search for the right bolt-on acquisitions that can be immediately accretive, and unlock growth synergies with our existing business.”

About Innovative Food Holdings, Inc.
At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the world’s best artisan food makers with top Professional Chefs and passionate Home Gourmets nationwide. We curate the assortment, experience, and tech enabled tools that help our customers create unforgettable experiences for their guests and families. IVFH’s owned online retail brands include www.igourmet.com, www.plantbelly.com and www.mouth.com.

Additional information is available at www.ivfh.com.

Forward-Looking Statements

This release contains certain forward-looking statements and information relating to Innovative Food Holdings, Inc. (the “Company”) that are based on the current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company. Such statements reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Words such as “may”, “should”, “expects”, “projects,” “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, “goal” and variations of such words and similar expressions are intended to identify forward-looking statements. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein. These statements involve significant known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. Additional factors that could also cause actual results to differ materially relate to, international crises, environmental and economic issues and other risk factors described in our public filings. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.

Investor and Media Contact:
Rich Tang
Chief Financial Officer
Innovative Food Holdings, Inc.
InvestorRelations@IVFH.com 

FAQ

What did Innovative Food Holdings, Inc. (IVFH) announce?

IVFH announced key progress against its strategic plan, including various sales and agreements related to its business operations.

What are the five key elements of progress announced by IVFH?

The five key elements include the sale of its building in Bonita Springs, FL, listing of its e-commerce fulfillment center for sale or lease, exploration of strategic alternatives for the e-commerce business, sale of its Grow Brand Management consulting business, and the sale of its minority stake in Curdbox.com.

Who is handling the sale of IVFH's e-commerce fulfillment center?

The sale of IVFH's e-commerce fulfillment center is being handled by CBRE, a national commercial broker.

What is the expected timeline for the sale of IVFH's building in Bonita Springs, FL?

The sale of IVFH's building in Bonita Springs, FL is expected to close in approximately 60 days.

What is the expected timeline for the sale of IVFH's Grow Brand Management consulting business?

The sale of IVFH's Grow Brand Management consulting business is expected to close in the next 30-60 days.