Innovative Food Holdings acquires LoCo Food Distribution

FORT COLLINS — A Florida-based gourmet specialty food distributor has acquired Fort Collins-based LoCo Food Distribution LLC for $358,000.

Innovative Food Holdings, Inc. (OTCQB: IVFH) purchased the business via its subsidiary Golden Organics Inc., from Elizabeth and Ben Mozer, who also own The Lyric theater in Fort Collins.

The couple started LoCo Foods in 2011 to deliver fresher, healthier foods to the market. According to a press release, LoCo Foods sales have reached $4.7 million in the last year, serving more than 200 customers along the Front Range, including retailers, hotels, hospitals, schools and restaurants. 

The purchase included $187,000 in equipment, as well as retiring all of the company’s long-term debt, which financed the company’s growth over the years, according to the release.

“We’re very enthusiastic about this acquisition, as it helps us launch new categories, enter new markets, and access new customers, with simple immediate cost savings opportunities to better leverage the Golden Organics assets we recently purchased,” Bill Bennett, CEO of IVFH, said in the release. “This transaction is consistent with our previous commentary about our acquisition search criteria and far exceeds our rate of return requirements before including the upside from synergies.” 

The business operates out of a 9,000-square-foot leased warehouse in Fort Collins. The lease expires in March 2025, at which point LoCo Foods will be moved and consolidated with the operations of the Golden Organics business in Denver. 

Since closing the transaction on Dec. 20, 2024, all past-due payables have now been brought current, and inventory investments are being made to support future growth, the release stated.

LoCo Foods’ 200+ Rocky Mountain customers are primarily retailers, with the Denver divisions of three large national retail chains making up approximately 56% of overall revenue, the release stated. LoCo Foods also brings more than 500 local Colorado items to IVFH’s catalog, the release stated, with the largest supplier making up 14% of revenue.

Innovative Food will consolidate delivery routes and implement a single ERP system, and integrate a single warehouse management system. The company also intends to expand LoCo Foods’ growth opportunities by providing access to the other sales channels under the IVFH umbrella. These opportunities should further improve the deal’s economics and will be a key focus post-closing.

LoCo Foods’ business will be managed by the president of Golden Organics business, Taeshaud Jackson, along with Sam Novotny from LoCo Foods, the release stated. The company also signed a consulting agreement with Elizabeth Mozer and will continue to use the LoCo Foods brand name.

“We believe the financial terms of this transaction are attractive with only factoring in the near term, committed relocation of the business, and before including any cost/revenue synergies or other long-term strategic implications,” Bennett said in the release. “Not only do we look forward to Elizabeth and Sam’s assistance with the move and integration, we are sincerely excited for the long-term contributions they will bring to the business given their intricate knowledge, deep local network, and proven expertise relating to LoCo Foods and all of its stakeholders. Given the opportunistic purchase price and structure of this deal, as well as the know-how of the team we are onboarding, this is an exciting additional opportunity for IVFH in the Denver market.”

Steptoe & Johnson PLLC acted as legal counsel to IVFH on the transaction.

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