Lendway, Inc. announced the closing of its acquisition of a majority ownership interest in Bloomia B.V., one of the largest producers of fresh-cut tulips in the United States. With this transaction, Lendway broadens its mandate to be a specialty ag and finance company and accelerates its pathway to long-term growth.
Originally founded in the Netherlands with an innovative spirit, Bloomia has grown to become a leader in the fresh-cut tulip industry, nurturing over 75 million stems annually. Bloomia operates from three strategically positioned locations in the United States, Netherlands, and South Africa and a strategic partnership in Chile and has established thriving relationships with numerous prominent U.S. retailers.
Lendway's subsidiary, Tulp 24.1, LLC acquired 100% of the ownership interests of Bloomia for approximately $47.5 million cash. Lendway now holds an 81.4% interest in Tulp 24.1, LLC, and is its sole managing member. Werner Jansen, the continuing CEO of Bloomia, is the subsidiary's only other member.
To finance the purchase, Tulp 24.1, LLC borrowed approximately $22.8 million under a new credit facility provided by Associated Bank, N.A., $15.5 million pursuant to bridge loans primarily funded by the sellers, and paid the remainder with cash on hand.
"We are thrilled to acquire this incredible business, which is an excellent fit within our specialty agriculture and finance strategy," said Mark Jundt, Chair of Lendway's Board of Directors. "We believe this transaction will bring significant value to our stockholders, with strong growth potential on the horizon. The addition of the Bloomia management team brings highly talented and motivated personnel who are capable of further growing its industry-leading operations. With this acquisition complete, Lendway will continue to explore additional growth and acquisition strategies in our existing and adjacent industries in keeping with our relentless focus on growing stockholder value."
"We are excited to announce Bloomia's integration into the Lendway family," said Bloomia CEO Werner Jansen. "This marks an exciting chapter in our journey, one that promises opportunity and potential for immense growth. Our passion for cultivating world-renowned tulips remains steadfast as we embark on this new capital partnership. While our heritage lies in the Netherlands, our global perspective drives us to embrace this new chapter wholeheartedly. We are confident that together with Lendway, we will reach new heights and continue to flourish in the floral industry."
"As a Lendway stockholder, I wholeheartedly endorse and applaud the completion of this transaction," said Nick Swenson, a member of the Lendway Board of Directors. "This timely and strategic move not only reflects the Board's commitment to delivering exceptional value to our shareholders but also positions the Company for long-term growth. I am confident that this investment reinforces Lendway's foundation, propelling its evolution into a dynamic specialty ag and finance company."
CapFit served as Lendway's financial adviser, and JB Law and Faegre Drinker served as legal advisers to Lendway.
For more information:
Lendway
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www.lendway.com