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Diving overview:
- Laird Superfood is spending $48 million. We stock Terrasoul Superfoods, which produces nuts, powders, baking ingredients and functional beverage mix-ins.
- The acquisition is being financed with financial support from private equity firm Nexus Capital Management, which will increase its stake in Laird from 53.5% to 71.7% as part of the transaction.
- This is Laird’s second major deal in the past few months. late December, Laird announced the acquisition of Navitas.It’s a deal that Nexus, a berry, seed and nutritional powder manufacturer, also helped fund.
Dive Insights:
Founded by a big-wave surfer in 2015, Laird has remained ideally positioned for success in the health and wellness space as people prefer better-for-you products. As health becomes a much larger part of consumer food trends, Laird, which has a market capitalization of $33 million, $50 million in revenue during fiscal 2025decided that the future would be brighter by increasing its size through acquisitions.
Laird’s portfolio includes creamers, coffee, hot chocolate with functional mushrooms, organic coconut sugar and coconut water with calcified Red Sea algae. The addition of Navitas and Terrasoul further expands Laird’s healthier offerings, giving it a deeper portfolio and scale to reach more consumers and retailers. Terrasoul generated $65.8 million in revenue last year alone.
But Laird’s deal comes at a cost. It’s trading a significant stake in Nexus to support its ability to grow quickly, something Laird acknowledges would be more difficult or impossible to do on its own due to its inherently smaller size.
Nonetheless, Laird CEO Jason Vieth said in a statement that the deal is “an important step forward in our mission to build the leading platform in superfoods and functional nutrition.”
Vieth added that Terrasoul’s online market presence, proprietary supply chain infrastructure and high-quality product portfolio are “strongly aligned with our long-term strategic priorities” and will “meaningfully accelerate our ability to serve consumers across channels at scale.”
Functional foods generally refer to products that provide specific benefits to consumers and encompass a wide range of ingredients and properties that can improve everything from physical health to mental health. The $138 billion functional foods market grew 4% during the fiscal year ending Feb. 22, according to data provided by Spins.
Terrasoul’s products span both large and emerging segments of the consumer wellness market; A portfolio designed to improve all Focus on mood, beauty and immunity. The acquisition of Terrasoul “further strengthens our confidence in the functional nutrition sector,” Nexus principal Kayla Dean Obia said in a statement.
