Manitoba Harvest Hemp Foods has been sold to US firm Compass Diversified Holdings (CODI) for $132.5 million dollars.

Last year, Manitoba Harvest reported net revenue of $37.9 million, an increase of about 23.9 per cent from the previous year.

The company's products are carried in about 7,000 retail stores across the US and Canada and are the fastest growing in the hemp food market and among the fastest growing in the natural foods industry.

CEO Mike Fata will continue to serve as CEO at the company.

"The acquisition of Manitoba Harvest by CODI is an exciting moment in our company's history," said Fata. "With CODI's proven history of supporting and growing niche market leaders, we are confident that we can further grow market share and continue to offer new innovative hemp-based food products to our customers. As our market continues to rapidly develop and consumers embrace the nutritional benefits of our products, with the added support of CODI, we will be in a strong position to accelerate our long-term growth potential."

The deal is expected to close in the next 45 days.