Workflow
Barfresh Enters into Stock Purchase Agreement for Strategic Acquisition of Manufacturing Company: Arps Dairy
BarfreshBarfresh(US:BRFH) Globenewswireยท2025-09-18 12:30

Core Insights - Company has increased its fiscal year 2025 revenue guidance to a range of $14.5 million to $15.5 million, up from a previous range of $12.5 million to $14.0 million [1][2] - Preliminary fiscal year 2026 pro forma revenue guidance is set at $30 million to $35 million, indicating a 126% increase compared to the high end of fiscal 2025 guidance [1][2] - Acquisition of Arps Dairy, Inc. for approximately $1.6 million in debt repayment is expected to enhance manufacturing capabilities and be accretive to earnings in fiscal 2026 [1][2][3] Revenue Guidance - Fiscal year 2025 revenue guidance raised to $14.5 million to $15.5 million, reflecting operational efficiencies from the acquisition [2] - Preliminary fiscal year 2026 revenue guidance of $30 million to $35 million reflects the full-year impact of enhanced manufacturing capabilities and operational synergies [1][2] Acquisition Details - Barfresh is acquiring Arps Dairy, which includes a 15,000-square-foot processing facility and a nearly completed 44,000-square-foot manufacturing facility [1][2] - The acquisition is structured as a stock purchase for approximately $1.6 million, with closing expected by October 1, 2025 [3] - The acquisition is expected to eliminate third-party manufacturing fees, reduce freight costs, and improve operational oversight [2] Operational Advantages - The acquisition is anticipated to provide multiple operational advantages, including lower cold storage costs and more efficient ingredient procurement [2] - Barfresh has already commenced manufacturing certain products at Arps Dairy's existing facility and plans to expand production immediately upon closing [2]