Canadian plant-based meat manufacturer Modern Meat has signed a letter of intent (LoI) to acquire local plant-based soup company Kitskitchen Health Foods.

Established in 2013, Kitskitchen’s plant-based soups are available at large grocery retailers, including Fresh Street Market and Whole Foods in British Columbia and Alberta.

Modern Meat finance and mergers and acquisitions head Campbell Beecher said: “Kitskitchen is a strategic acquisition for our company as it has established a great local follow.

“By implementing our financial expertise with the kits team, we will be looking to grow its revenues and develop it into a national brand.”

According to the LoI, Modern Meat plans to own the distribution rights to the Kitskitchen brands and also intends to continue to work with its team.

Completion of the deal is subject to various conditions, including the completion of definitive documentation, approval of the Canadian Securities Exchange, and other customary conditions.

Modern Meat CEO Tara Haddad said: “The acquisition unites us with a well-established brand with an attractive growth profile. Kitskitchen’s product and management align with Modern Meat’s philosophy of the fast-growing plant-based space.

“We feel the ready-to-eat category in the plant-based space is underexplored. By acquiring a well-recognised local brand and putting our financial resources behind it, I feel we can grow the sales of Kitskitchen significantly.”

Modern Meat said that there is no guarantee that the deal will be completed on the proposed terms or at all.