The terms of the agreement have not yet been announced, but both parties have expressed satisfaction at the arrangement.
"It provides us with a valuable exclusive private label to assist our stores in reaching the next level," said Newfound management in a statement. Newfound Health president Azim Velji will provide consulting and management assistance to the new owners throughout the transition period.
"With more stores and a stronger presence in Alberta, we will continue to build our revenues, increase our buying power, and offer our customers a wide range of healthy organic and natural living products," said Planet Organic VP, corporate development and CFO Darren Krissie. The Newfound chain will be operated under the Sangster division, headed up by Roy Sangster.
In the past three years Planet Organic has grown from one small market store to 40 large natural supermarkets in Edmonton, Victoria, Calgary, Port Coquitlam and Halifax, as well as a chain of supplement and market stores across Canada.
Its stated aim is to "consolidate the fragmented natural and organic foods industry in Canada and the US via acquisitions, mergers and new retail operations".
At the beginning of this month the company completed its C$5.5 million acquisition of vitamin, mineral and supplements manufacturer and distributor Trophic Canada.
It has recently made two other strategic acquisitions to extend the reach of its retail operations: Sangster's Health Centres, a Canada-wide chain of 35 vitamin and supplement stores, and Great Ocean Natural Foods organic and natural products retailer, located in Halifax.