Barfresh Food Group to acquire Arps Dairy for $1.6M in debt repayment

Barfresh Food Group (BRFH) entered into a definitive agreement to acquire all outstanding capital stock of Arps Dairy, an Ohio-based dairy processing company, for approximately $1.6M in debt repayment, which the company was able to do by increasing its line of credit. The strategic acquisition positions Barfresh to significantly enhance its manufacturing capabilities while reducing operational costs and improving margins. The acquisition includes Arps Dairy’s existing processing facility in Defiance, Ohio, consisting of 15,000 square-feet as well as an almost completely constructed 44,000-square-foot state-of-the-art manufacturing facility that Barfresh plans to complete construction and install processing equipment during 2026, creating a modern production hub that will serve as a cornerstone of the Company’s expanded manufacturing strategy. In addition, Arps Dairy has been preliminarily approved for a $2.3M government grant to be used towards finalizing the construction and equipment installation of the additional 44,000 square-foot facility. Barfresh is purchasing Arps at a discount to the projected completion value of its net assets, in addition to the benefit of an expected $2.3M government grant, and has already commenced manufacturing certain products at Arps Dairy’s existing facility and expects to expand production immediately upon closing of agreement. This acquisition delivers multiple operational advantages including elimination of third-party manufacturing fees, more efficient ingredient procurement and reduced freight costs, lower cold storage costs through integrated operations, and enhanced oversight of production processes. The acquisition is structured as a stock purchase for approximately $1.6M, representing the repayment of certain existing Arps Dairy debt, including an asset-based revolving facility, with closing subject to customary conditions. Barfresh expects the transaction to close by October 1, 2025.