Biobest and The Bug Factory sign Letter of Intent

Biobest and The Bug Factory today announced the intent to proceed with the integration of the operations of The Bug Factory in Biobest’s North-American operations. Under the terms of the Letter of Intent signed between the two companies, Biobest would acquire 100% of the shares of the Bug Factory. The Bug Factory has been Biobest’s exclusive distributor in Western Canada since 2003. The Bug Factory also produces certain beneficials that are complementary to Biobest’s product range and serves a number of customers in the US market.

Jean-Marc Vandoorne, Biobest’s CEO said: “The Bug Factory has been a valued and successful distributor for Biobest. We have worked together well for many years and believe there is good potential for commercial and operational synergy if we go for a full integration. It is a good time for the founders of The Bug Factory to consider the long term future and succession of the company. I am pleased that we have been able to elaborate mutually agreeable terms for a transaction. We are convinced that our combined teams will be strongly positioned to take advantage of the many opportunities that are unfolding in the Western part of North America. Chris and Angie Hale have a significant role to play in our future growth in this market.”

Chris Hale, CEO of The Bug Factory said: “We have accomplished a lot over the last few years. Based on excellent service and advice and a strong product portfolio consisting of Biobest products and products produced in-house we have built a strong customer base. The market for pollination and biological control in Western North America is growing rapidly. The critical mass that we will gain by integrating our operations with Biobest will be a strong advantage. I am pleased to have the opportunity to integrate our activities with a company with which our values and vision are well aligned.”

The Letter of Intent defines the intended terms of the acquisition, which are not disclosed. The completion of the transaction is subject to a due diligence review which both companies aim to finalize within the next couple of months.

For more information, please contact
Herman Van Mellaert
Tel: + 32 14 25 79 80
E-mail: herman.vanmellaert@biobest.be

Angie Hale
Tel: + 1 (250) 46 87 912
E-mail: ahale@thebugfactory.ca

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