Popular apple cider vinegar gummy brand Goli Nutrition has entered into a definitive acquisition agreement with a group that includes Group KPS, Bastion Capital, and one of the company's original founders. The transaction is part of a pre-packaged process under the Companies' Creditors Arrangement Act (CCAA) in Canada.

WHO: Goli was launched in 2019 by Michael Bitensky with vegan organic Apple Cider Vinegar Gummies. Deepak Agarwal, a serial entrepreneur and investor, helped Bitensky get the brand off the ground and is considered a co-founder. The inventive, people-focused nutrition company is committed to providing innovative products, formulated with quality ingredients, that make taking daily supplements enjoyable. At the core of it all, Goli Nutrition leads with purpose, attaining B Corp Certification for their Goli for Good initiatives. 

Group KPS is a healthcare company with an extensive distribution network in Latin America. Group KPS currently distributes Goli products in Mexico and has a deep understanding of its brand and the potential for growth, in North America and internationally. 

Bastion Capital has an extensive track record of financing and supporting successful consumer-based businesses.

WHY: The transaction will strengthen Goli's balance sheet and position the company to drive growth, including into new markets, invest in new product innovation, and build on its partnerships with retailers globally. With the backing of strong, well-capitalized sponsors and an extraordinary brand with industry-leading customer loyalty, the transaction will allow Goli to continue to operate and innovate with far greater strength and better positioned for success and sustainable future growth. 

IN THEIR OWN WORDS: "Group KPS is a long-standing distributor of Goli products, and we see strong long-term potential in the company's iconic brand, exceptional product quality, and high repeat purchase rates across its loyal consumer base," said Felipe Preciado, CEO of Group KPS. "We are excited to enter into this acquisition to enable Goli to unlock new growth opportunities and do what it does best in bringing innovative products to consumers worldwide."

 DETAILS: 

• Goli Nutrition is being sold to a business consortium involving Group KPS, Bastion Capital, and one of its original founders.
• As part of the transaction, Goli is retaining members of the original management who team who bring a deep understanding of the business and a history of success in the industry.
• The transaction, which has the full support of the company's lenders, is part of a pre-packaged process under the Companies' Creditors Arrangement Act (CCAA) in Canada. The company obtained an initial order from the Superior Court of Quebec on March 18, 2024, which provides for, among other things, a stay of proceedings that will allow the company to move forward with the transaction.
• The transaction remains subject to court approval in Quebec and the US. During this process, the company's operations will continue uninterrupted in the ordinary course of business, and it will continue to deliver its products to its valued customers, distributors, and retailer partners worldwide.  
• Nutrition Business Journal estimates Goli grew 25% from 2020 to 2021 to reach $438 million in 2021 sales, placing it among the top 25 supplement brands in the United States.
• Canaccord Genuity Corp. is acting as financial advisor and Bennett Jones LLP is acting as legal counsel to the acquirer group. Davies Ward Phillips & Vineberg LLP is acting as legal counsel to Goli.
• In December 2022, Better Nutritionals, a gummy supplement manufacturer, filed for Chapter 11 bankruptcy amid a dispute with Goli Nutrition. Better Nutritionals accused Goli of fraud tied to a stock swap transaction that caused the company to run low on cash after building out a manufacturing facility to meet increased production requests from Goli that ultimately didn’t materialize.
• In October 2021, VMG Partners closed on a $100 million investment for a 4.5% equity stake in Goli.