Village Farms has signed a deal to spin off a large chunk of its fresh produce business, folding it into a new joint venture backed by private equity and positioning itself to double down on cannabis, according to a company’s release.

The newly created company, Vanguard Food LP, will take over most of Village Farms’ U.S.-based greenhouse assets, including the 40-acre Marfa II and 40-acre Fort Davis facilities in Texas, as well as the distribution infrastructure. Village Farms will $40 million in cash, but won’t be involved in the day-to-day running of Vanguard.

“This transaction monetizes one-third of our greenhouse assets, positions our produce business to thrive independently, and frees us up to keep building on our leadership in global cannabis,” said CEO Michael DeGiglio.

The JV will be run in part by Charlie Sweat, founder of Sweat Equities, a produce industry veteran who grew Earthbound Farm from $10 million to over half a billion in sales. He’s now leading a roll-up strategy aimed at consolidating high-performing North American produce brands under the Vanguard umbrella.

Village Farms, meanwhile, keeps control of the Monahans greenhouse in Texas and leases the adjacent Marfa I site to Vanguard — a move that preserves future expansion potential for cannabis in the U.S. if (or when) federal reform finally arrives.

The Canadian side of the business remains untouched. Village Farms still owns and operates three greenhouse facilities in Delta, British Columbia — totaling 110 acres — which continue to produce both cannabis and vegetables. Under the new agreement, some of those facilities will keep supplying produce to Vanguard under long-term service and supply agreements.

But make no mistake: the company’s future bets are clearly on cannabis. With established operations in Canada, growing international activity (especially in Europe), and new capital freed up by the produce divestment, Village Farms is moving with intent. As DeGiglio put it: “Village Farms is all in on the future of cannabis globally.”

For more information:
Village Farms International Inc.
Tel.: +1 (407) 936-1190
villagefarms.com