Inventure Foods has agreed to divest its frozen business unit to Oregon Potato Company (OPC) for $50m as part of its ongoing strategic and financial review.
Under the terms of the definitive asset purchase agreement, the Arizona-based specialty food marketer and manufacturer will be selling its Rader Farms and Willamette Valley Fruit Company brands.
Along with that, Inventure will also sell select assets, rights and properties associated with its frozen fruits, vegetable blends, frozen desserts and beverages business to Oregon Potato.
OPC president Frank Tiegs said: “We look forward to completing the acquisition of the Rader Farms and Willamette Valley Fruit brands and believe they will be a strong complement to our existing potato, vegetable and fruit business.”
Based in Pascao, Washington, OPC grows and processes potatoes, vegetables and fruits. The potato grower and processor has facilities across three states with operations in Washington, Idaho and Oregon.
For Inventure, the transaction which is anticipated to be closed by the month end is being done to maximize its shareholder value.
Inventure Foods CEO Terry McDaniel said: “This is a significant second step under our strategic and financial business review.
“We intend to use the proceeds from the transaction to further reduce our debt and improve our overall financial flexibility in order to allow us to focus on continuing to grow our leading snack business as we finalize our strategic review.”
In March, the company had made a similar strategic decision by divesting Georgia-based branded frozen vegetable processor Fresh Frozen Foods to The Pictsweet Company to raise a capital of about $23.7m.
Inventure Foods produces specialty food brands in the better-for-you and indulgent categories from its manufacturing facilities across the states of Arizona, Indiana, Georgia, Oregon and Washington.
