Neptune Wellness Solutions said that it could take full ownership of Sprout Organics, an organic baby food brand, by acquiring the remaining 49.9% stake in the latter for $13 million.

According to the Nasdaq-listed consumer packaged goods company, the agreement fixes the price of the consideration for exercising the option to buy out the remaining stake. It is pursuant to a call option agreement signed with Sprout Organics’ minority stockholders.

Neptune Wellness Solutions, which is focused on plant-based, sustainable, and purpose-driven lifestyle brands, acquired a 50.1% stake in of the organic baby food brand in February 2021.

The agreement is contingent on Neptune Wellness Solutions taking the call option and getting its board approval. Additionally, the proposed buyout is subject to the arrangement of funding sources to complete the acquisition being successful.

The purchase price will be made up of at least $10.5 million in cash and the remaining in the form of Neptune Wellness Solutions’ shares.

Neptune Wellness Solutions stated: “There can be no assurances that the call option will be exercised or that it will close by June 15, 2023, if at all, that Board approvals will be obtained or that Neptune will be successful in arranging funding sources to complete the purchase.”

  Food acquisition news, Neptune Wellness Solutions, Sprout Organics, USA