Mastronardi Produce and AppHarvest have announced a new endeavor. The companies have signed a non-binding letter of intent to form FarmCo, a joint venture to develop a portfolio of controlled environment agriculture (CEA) facilities to expand the supply of fruits and vegetables including leafy greens to Mastronardi's existing fresh produce marketing and distribution business.
Paul Mastronardi, President and CEO, Mastronardi Produce (CNW Group/Mastronardi Produce Ltd.)
Jonathan Webb, Founder and CEO, AppHarvest (CNW Group/Mastronardi Produce Ltd.)
FarmCo is planned to have its own leadership team, and calls for the two partners to contribute equity and assets of over $100M. The venture would use the equity contributed from both companies to raise additional capital to fund its growth, targeting to build over 750 acres of CEA Facilities in the United States to grow fresh fruits and vegetables including leafy greens.
"We are extremely pleased to be entering into this letter of intent with AppHarvest," says Paul Mastronardi, President and CEO of Mastronardi Produce. "We have seen the demand for locally-grown produce skyrocket, particularly over the past 18 months as more people are cooking from home, and this partnership will allow us to significantly increase our ability to get more fresh, flavorful locally-grown produce to tables across America."
"Partnering more closely with them to fulfill the growing demand for quality local, fresh produce across the United States positions us together to make an even greater impact to establish a climate-resilient, sustainable food system to ensure food security," adds Jonathan Webb, AppHarvest Founder, and CEO.
