Sadot Group Inc. Announces Management Services Agreement Between Subsidiary Sadot Canada Inc. and Big Sky Milling Inc.

Rhea-AI Summary

Sadot Group Inc. (Nasdaq: SDOT) has announced that its subsidiary, Sadot Canada Inc., has entered into a management services agreement with Big Sky Milling Inc., a leading supplier of pulses and specialty crop ingredients to the North American pet food industry.

Under the agreement, Sadot Canada will provide full-scale management services to Big Sky Milling and receive a monthly service fee. The deal grants Sadot access to Big Sky Milling's facility in Bowden, Alberta for transloading and toll processing activities to support export operations. Sadot will earn management fees and procurement commissions, while Big Sky Milling will generate toll processing revenue from Sadot's export transactions.

The facility's strategic location in one of Canada's most productive agricultural regions offers competitive logistics advantages for serving North American and global markets. This collaboration strengthens both companies' positions in the North American pet food market, currently valued at over $50 billion and expected to grow over the next decade.

Positive

• New revenue streams through management fees and procurement commissions
• Access to strategic export infrastructure in key Canadian agricultural region
• Entry into $50 billion North American pet food ingredients market
• Expansion of supply chain capabilities without capital investment

Negative

• None.

Insights

Supply Chain & Agribusiness Analyst

Sadot's partnership with Big Sky Milling creates new revenue streams and expands supply chain capabilities without capital investment—strategically positive for both companies.

This management services agreement between Sadot Canada and Big Sky Milling represents a strategic expansion in Sadot's global food supply chain operations. The partnership creates multiple revenue streams for Sadot through monthly management fees and procurement commissions, while simultaneously securing valuable infrastructure access without capital expenditure.

The deal gives Sadot access to Big Sky's facility in Bowden, Alberta—a prime location in one of Canada's most productive agricultural regions. This strategic position offers Sadot competitive logistics advantages for both North American distribution and international exports, enhancing its transloading and toll processing capabilities.

For Big Sky Milling, the arrangement provides professional management support while generating additional toll processing revenue from Sadot's export transactions—creating operational synergies for both parties.

The partnership strengthens Sadot's position in the North American pet food ingredients market, valued at over $50 billion and projected to grow steadily. As consumer preferences shift toward premium, nutritious, and sustainably sourced pet food, this collaboration enhances Sadot's ability to participate in this expanding sector.

This agreement aligns with Sadot's emergence in the global food supply chain, demonstrating how smaller companies can expand capabilities through strategic partnerships rather than capital-intensive acquisitions. The facility's capacity for future expansion also provides scalability for both the pet food ingredients business and international trade operations.

Agreement Strengthens Participation in the North American Pet Food Ingredient Supply Chain and Enhances Export Infrastructure

BURLESON, TEXAS / ACCESS Newswire / April 24, 2025 / Sadot Group Inc. (Nasdaq:SDOT) ("Sadot Group", "Sadot" or the "Company"), an emerging player in the global food supply chain sector, is pleased to announce that its wholly owned subsidiary, Sadot Canada Inc., has entered into a management services agreement with Big Sky Milling Inc. ("Big Sky Milling"), a leading supplier of pulses and specialty crop ingredients to the North American pet food industry.

Under the agreement, Sadot Canada Inc. will provide full-scale management services to Big Sky Milling, supporting its operations and driving growth across its business. In return, Sadot will earn a monthly service fee for its management services. The agreement also grants Sadot access to Big Sky Milling's state-of-the-art facility in Bowden, Alberta for transloading and toll processing activities in support of its growing export operations, providing access to a strategically located facility in a key growing region in Canada. Sadot will earn a monthly management fee and procurement commissions while Big Sky Milling will generate toll processing revenue from Sadot's export transactions, enabling both companies to unlock operational synergies and shared growth opportunities.

"This is a win-win collaboration," said Catia Jorge, CEO of Sadot Group Inc. "Sadot expands its supply chain capabilities and export infrastructure in a key geography, while Big Sky Milling is expected to benefit from an additional stream of processing revenue and comprehensive experienced management support."

Big Sky Milling's facility in Bowden, Alberta is ideally located in the heart of one of Canada's most productive agricultural regions. Bowden offers a key strategic advantage, with proximity to major crop production zones and access to highly competitive logistics lanes serving markets across North America and globally. The facility also boasts significant capacity for future expansion, making it a strong partner for scalable growth in the both the pet food ingredients business and in exports for international trade.

The collaboration strengthens both companies' position in the rapidly expanding North American pet food market, which is valued at over $50 billion and projected to grow steadily over the next decade. As consumer demand rises for high-quality, nutritious, and sustainably sourced ingredients, especially in the premium and specialty pet food segments, Big Sky Milling's expertise and processing capabilities provide a strategic edge in servicing this dynamic sector.

About Big Sky Milling Inc.

Big Sky Milling Inc. is a leading supplier of high-quality pulses and specialty crop ingredients to the North American pet food industry. The company operates a state-of-the-art processing facility in Bowden, Alberta, strategically located in a key crop-producing region with efficient access to logistics infrastructure serving both domestic and global markets. Big Sky Milling is a wholly owned subsidiary of 35 Oak Holdings Ltd.

About 35 Oak Holdings Ltd.

35 Oak Holdings Ltd. is a private family office with a diversified portfolio of investments across real estate, agriculture, and other strategic sectors. 35 Oak focuses on long-term value creation through active investment and operational excellence in its portfolio companies.

About Sadot Group Inc.

Sadot Group Inc. has rapidly established itself as an emerging player in the global food supply chain. Sadot Group provides innovative and sustainable supply chain solutions that address the world's growing food security challenges.

Sadot Group currently operates within key verticals of the global food supply chain including global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, and farm operations producing grains and tree crops in Southern Africa.

Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.

Sadot Group is headquartered in Burleson, Texas with subsidiary operations throughout the United States, Brazil, Canada, Colombia, India, Israel, Singapore, Ukraine, United Arab Emirates and Zambia. For more information, please visit www.sadotgroupinc.com.

Forward-Looking Statements

This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Relations:

E - IR@sadotco.com

SOURCE: Sadot Group Inc.

View the original press release on ACCESS Newswire

FAQ

What are the key benefits of Sadot Group's (SDOT) management agreement with Big Sky Milling?

The agreement provides Sadot with access to strategic export infrastructure in Alberta, management fee revenue, and procurement commissions, while strengthening their position in the pet food ingredient supply chain.

How will the Big Sky Milling facility in Bowden, Alberta benefit SDOT's operations?

The facility provides Sadot with transloading and toll processing capabilities in a key agricultural region, offering competitive logistics advantages for North American and global markets.

What is the current market value of the North American pet food market that SDOT is targeting?

The North American pet food market is currently valued at over $50 billion and is projected to grow steadily over the next decade.

What revenue streams will SDOT generate from the Big Sky Milling agreement?

Sadot will earn monthly management fees and procurement commissions from the agreement with Big Sky Milling.