US-based Terra Tech, a producer of sustainable agricultural products, has entered into an agreement to acquire NB Plants, a New Jersey-based sustainable hydroponic farm spread across 116 acres.
Through this acquisition, Terra Tech plans to enter a $20bn worth fresh produce market. USDA said recently that the country's trade deficit in fresh produce was $6.2bn in 2011, which will grow to $10.7bn by 2021.
The acquisition, which will also include the Edible Garden brand, is expected to increase the annual revenue by more than $6m, reported Daily Finance.
NB Plants cultivates ornamental flowers along with hydroponically grown fresh produce that includes basil, oregano, parsley and lettuce under the Edible Garden brand. According to NB Plants CEO Mike Vande Vrede, the hydroponics has enabled the plant to produce products efficiently by lowering the utilization of natural resources.
Terra Tech CEO Derek Peterson was quoted by Daily Finance as saying that this acquisition is a key step for the company. "We see significant opportunities to accelerate growth through acquisition and to create shareholder value," Peterson added.
