May 25, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Muscle Maker Inc. (MMI), a global agricultural commodity supply chain and restaurant company, announced the acquisition of 4.942 acres of farmland in Zambia for $8.5 million through its wholly-owned subsidiary Sadot, an international agri-food company. 

The land, which included all buildings and related assets, is located within the Mkushi Farm Block of Zambia’s Region II agricultural zone – the most productive agricultural area in the country. 

Late in 2022, MMI began its strategic evolution from a consumer-focused, U.S. restaurant business into a global food-focused venture with two business units: Sadot, and MMI Restaurant Group. 

As its largest subsidiary unit, Sadot was formed in partnership with Aggia LLC FZ, a Dubai-based, international consulting firm, and engages in the trading and shipping of food and feed commodities such as soybean meal, wheat, and corn.

Zambia, located in southern Africa, is a country with great agricultural potential. The sector plays a significant role in the country’s economy, and the production of key crops such as corn (2.7 million tons in the 2022/23 season), soybeans (475,000 tons in 2022/23), and wheat (235,000 tons in 2022/23), contribute to both domestic food security and export opportunities.

The company explained that the purchase of this farm will create multiple benefits for Sadot as it strengthens its standing as an international agri-food company.

The asset produces Sadot’s three main targeted commodities: wheat, soy, and corn, along with additional high-value permanent crops such as avocados and mangoes. Initially, plans are for these crops to be sold to local African markets with the further goal to integrate sales into Sadot’s international trade, launching  a new business vertical in the food supply chain strategy. 

“Upon closing of the purchase of the Mkushi Farm, it is expected to continue to diversify MMI’s holdings within the world’s food and feed supply chain,” stated Michael Roper, CEO, MMI. 

“We view Africa in general and specifically Zambia, as a region that presents numerous opportunities and we expect the purchase to help accelerate Sadot’s growth within the agri-commodity space.”

Roper continued, “The addition of Sadot to the MMI portfolio has been the key driver behind our recent growth. We have taken several successful steps in our shift to diversify our U.S.-centric restaurant business towards a more globally focused food organization.”

The deal also is expected by the company to improve its access to global credit facilities for larger agri-commodity trades and greater margins. Sadot had formerly made a $5 million deposit on undeveloped farmland in Africa. That deposit has been applied to this purchase agreement as part of the all-cash transaction which awaits final approval from the Zambian government.

“The Farm acquisition, when closed, is expected to further accelerate our growth as a related diversified holding company and to provide MMI shareholders exposure to our enhanced and expanding portfolio.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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