Barfresh Food Group (BRFH) said Thursday it agreed to buy Arps Dairy in a stock purchase deal valued at about $1.6 million, with closing expected by Oct. 1.

The company also raised its fiscal 2025 revenue guidance to between $14.5 million and $15.5 million from a prior outlook of $12.5 million to $14 million. Two analysts polled by FactSet expect $12.9 million.

Barfresh Food also issued preliminary fiscal 2026 revenue guidance of $30 million to $35 million. Two analysts surveyed by FactSet expect $18.2 million.

The company said the acquisition is slated to be accretive to fiscal 2026 earnings and includes Arps' existing Ohio processing plant and a nearly completed 44,000-square-foot facility, which has been preliminarily approved for a $2.3 million government grant.

Barfresh said the deal will allow it to bring more production in-house, cut costs, and expand output. The company said it has already begun limited production at the Arps site and plans to scale operations following the close.

Shares of the company were up more than 18% in recent Thursday premarket activity.