Private-equity-backed Vanguard will take over Village Farms’ Texas greenhouses for $40 million cash and a 37.9 % stake, using the assets to build a branded CPG powerhouse while the grower redirects its focus to international markets
Village Farms International has announced a strategic transformation of its Fresh Produce segment through a definitive agreement with Vanguard Food LP, a newly formed holding company backed by private investment firms, including Sweat Equities.
This transaction will establish a privately held joint venture, with Village Farms as a minority owner, allowing the company to focus on its growing international business.
The fresh produce division will be repositioned to operate independently with new strategic capital partners.
The Fresh Produce division will become the core of Vanguard’s commercial operations, supported by capital partners committed to expanding product categories and customer offerings through mergers and acquisitions.
This joint venture aims to leverage Village Farms’ expertise in cultivation, sales, marketing, and distribution to create a leading branded consumer packaged goods (CPG) company promoting sustainable farming practices.
Under the agreement, Village Farms will privatize its Texas based 40-acre Marfa II and 40-acre Fort Davis greenhouse assets, including all produce-related intellectual property, excluding the Village Farms name.
The company will also transfer its product distribution facilities, employees, and operational control to Vanguard.
The transaction, involving asset and lease transfers, is expected to be completed in the second quarter of 2025, following closing conditions.
In exchange, Village Farms will receive $40 million in cash and a 37.9% equity stake in Vanguard.
The company will have no future cash obligations to Vanguard and will retain pre-emptive rights to maintain its ownership interest.
Following the transaction, Village Farms will continue to own its 30-acre Monahans greenhouse facility and will own and lease its 20-acre Marfa I greenhouse to Vanguard.
The Marfa I site, currently expandable to 40 acres, is adjacent to 950 acres of unoccupied land, offering future expansion potential.
In Canada, Village Farms will maintain ownership and operation of its Delta greenhouses in British Columbia, comprising the 60-acre Delta 1, 25-acre Delta 2, and 25-acre Delta 3 facilities.
The Delta 1 greenhouse generated approximately $25 million in fresh produce sales in 2024.
Village Farms will continue to supply Vanguard under multi-year service and supply agreements.
Charlie Sweat, Founder of Sweat Equities, has been appointed Chairman of Vanguard’s Board of Managers, while Michael A. DeGiglio, CEO of Village Farms, will serve as Interim CEO of Vanguard until a permanent successor is found.
Steve Ruffini, CFO of Village Farms, will also join the Board of Managers.
Village Farms reported financial results for the first quarter ended March 31, 2025, with a continued focus on driving profitable sales.
The company highlighted improved performance in its Canadian operations, noting growth in higher-margin sales and maintaining a stable market position despite strategic reductions in lower-margin branded sales.
The results reflect the company’s ongoing efforts to optimize its fresh produce business while enhancing operational efficiencies.
