Bo Secures Seven-Figure Acquisition by Tricentris in Major Deal

Mishel Wong’s sustainable packaging startup, Bo, has been acquired by Tricentris, Quebec’s largest recycling cooperative. This acquisition marks a significant turnaround for the company, which faced considerable challenges this past year, including fundraising difficulties and staff layoffs. Wong confirmed that Tricentris met Bo’s asking price in the “seven-figure” range, although she did not disclose the exact amount.

Wong founded Bo in 2021 in Montréal, offering food service operators a turn-key, reusable container platform. This initiative allows customers to request their orders in Bo containers, which can be returned at designated drop-off points for cleaning and reuse. Wong previously expressed her concerns about the viability of her business model, particularly when Investissement Québec paused its Impulsion PME (IPME) program last November. The program played a critical role in supporting early-stage startups, and its suspension left many businesses, including Bo, in a precarious position.

Reflecting on her earlier struggles, Wong recalled, “I didn’t know that stress could feel so physical.” Yet, the recent acquisition has transformed her concerns into relief. The deal not only validates her business model but also alleviates the pressure of facing “pitying looks” at networking events regarding her startup’s financial situation.

Despite the setbacks, Bo achieved profitability this year, a remarkable feat given that it had to lay off three-quarters of its staff as it navigated through its challenges. Wong secured $75,000 in SAFE investments to help bridge the company into the new year while exploring acquisition options. “We managed to achieve profitability despite all the distractions around raising and the potential acquisitions,” she stated.

Wong emphasized the importance of adapting the business model to ensure sustainability. “At the beginning, you do a lot of unscalable things that cost a lot of money,” she noted. “We just need to remind ourselves that we’re setting the industry standard.” This adaptation aligns with broader industry trends, as other Canadian companies like Vancouver-based Reusables and Guelph’s Friendlier also seek to tackle single-use food waste.

The acquisition allows Bo to integrate into Tricentris’ existing infrastructure, enhancing its reach to 190 member municipalities. Wong will take on the role of Director of Business Development at Tricentris, while her technical and operational team members will continue in their respective positions.

Looking ahead, Wong expressed optimism about the future: “Even in the best of times, this would have been an ideal outcome. We’re not focused on a pilot project and survival anymore; we can make optimal decisions for impact rather than just always compromising because we don’t have enough money.”

This acquisition not only signifies a successful pivot for Bo but also highlights the growing importance of sustainable practices in the food service industry. As Wong and her team transition into their new roles, they aim to set a standard that reflects both innovation and sustainability in their operations.