What's Happening?
Barfresh Food Group Inc. has announced a strategic acquisition of Arps Dairy, Inc., an Ohio-based dairy processing company, for approximately $1.6 million. This acquisition is aimed at enhancing Barfresh's manufacturing capabilities, reducing operational costs, and improving margins. The acquisition includes Arps Dairy's existing processing facility and a nearly completed state-of-the-art manufacturing facility. Barfresh plans to complete construction and install processing equipment by 2026, creating a modern production hub. The company has increased its fiscal year 2025 revenue guidance to $14.5-15.5 million and projects fiscal year 2026 pro forma revenue of $30-35 million, representing a 126% increase. The transaction is expected to close by October 1, 2025.
Why It's Important?
This acquisition is significant for Barfresh as it positions the company to bring the majority of its manufacturing in-house, eliminating third-party manufacturing fees and reducing freight costs. By gaining greater control over its supply chain, Barfresh is poised for accelerated growth and expanded market opportunities. The acquisition is expected to deliver multiple operational advantages, including more efficient ingredient procurement and lower cold storage costs. The strategic move is anticipated to enhance returns to shareholders through improved operational efficiency and expanded market reach.
What's Next?
Barfresh expects the transaction to close by October 1, 2025, and plans to expand production immediately upon closing the agreement. The company aims to leverage the operational benefits from the manufacturing capacity expansion and new market opportunities enabled by the Arps acquisition. Barfresh is focused on capturing significant value creation opportunities in 2026 and beyond.
