GreenSpace Brands has announced the sale of its organic juice and iced tea brand Kiju to Zurban Beverages.

As per the deal, Zurban Beverages will acquire the brand for C$8m ($5.9m). The company will make an upfront cash consideration of C$7.5m ($5.6m) and revenue based earn-out of $500,000.

GreenSpace Brands CEO Matthew von Teichman said: “We’re thrilled to be selling the Kiju brand to Zurban, and we’re very proud of how we’ve strengthened and developed the Kiju brand over the last few years, particularly as it relates to the launch of Kiju Fit.

“We’re very proud of how we’ve strengthened and developed the Kiju brand over the last few years.”

“This transaction is significant for many reasons, not the least of which is that we feel it establishes a value for the rest of the brands in our portfolio of at least 1x sales, it helps to pay down some debt and it gives us some much needed additional working capital.

“The sale of Kiju, although bittersweet for us, is an important milestone in our evolution as a company.”

GreenSpace will be using the proceeds from the transaction towards general working capital purposes, and to pay down debt, which is estimated to be $13-$15m post-closing.

In February this year, Agrifoods International Cooperative’s subsidiary Organic Meadow acquired GreenSpace Brands’ Rolling Meadow Dairy brand, excluding the egg business.

Under the agreement, Agrifoods will pay $1.8m as an upfront consideration, as well as royalties based on revenue over four years.