Barfresh Food Group (BRFH) has acquired Ohio-based Arps Dairy for $1.3 million, enhancing its manufacturing capabilities. The acquisition broadens Barfresh's production reach and reduces costs through improved production oversight. Arps Dairy has been conditionally approved for a $2.3 million government grant to aid in plant expansion. The acquisition presents benefits in cutting manufacturing costs, optimizing ingredient purchasing, reducing transportation and storage expenses, and improving production oversight.
Barfresh Food Group Inc. (BRFH) has completed the acquisition of Ohio-based Arps Dairy Inc., marking a significant strategic move aimed at enhancing its manufacturing capabilities and operational synergies. The acquisition, finalized for approximately $1.3 million in debt repayment, expands Barfresh's manufacturing footprint and is expected to more than double its revenue in the coming fiscal year
Barfresh Completes Strategic Acquisition of Arps Dairy[1].
The acquisition includes Arps Dairy's operational 15,000-square-foot processing facility and a 44,000-square-foot state-of-the-art manufacturing facility nearing completion. Both facilities are located in Defiance, Ohio. Barfresh has already commenced production at the existing Arps Dairy facility and plans to complete construction at the larger facility by the end of 2026. Arps Dairy has been conditionally approved for a $2.3 million government grant to support the finalization of construction and equipment installation
Barfresh Completes Strategic Acquisition of Arps Dairy[1].
Riccardo Delle Coste, Barfresh'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 acquisition is anticipated to be accretive to earnings in fiscal 2026, as Barfresh realizes the full benefit of its expanded manufacturing capabilities and operational cost reductions. 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
Barfresh Completes Strategic Acquisition of Arps Dairy[1].
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. These improvements are expected to significantly enhance Barfresh's profitability and competitive position in the market.
Comments
No comments yet