Planet Organic Turns Over a New Leaf

EDMONTON, Alberta—Planet Organic Health Corp. signed a letter of intent to purchase 100 percent of the shares of Santa Cruz, Calif.-based New Leaf Community Markets for $9.75 million. New Leaf generated revenues of $26.4 million in fiscal 2007; growth initiatives already underway at the chain include a store renovation and two new store locations.

The acquisition will be funded by the issuance of 1.2 million shares of Planet Organic (TSX Venture Exchange:POH) at an issuance price of $2.50, with the balance of $6.75 million paid in cash. The acquisition is expected to close in April. While a release from Planet Organic noted that “the New Leaf team has decided to join the Planet Organic organization,” there was no response to inquires on how the New Leaf management team, including the chain’s co-owner and founder, Scott Roseman, will be incorporated into the mix.

Planet Organic operates eight natural food supermarkets across Canada as Planet Organic; 11 Mrs. Green’s Natural Markets natural supermarkets in the United States; 48 natural health outlets as Sangster’s Health Centre; and seven “Healthy’s” operations. The company also operates Trophic Canada, a Canadian dietary supplement manufacturer.