Inventure Foods Announces Strategic Sale of its Frozen Division
September 12 2017 - 4:05PM
Inventure Foods, Inc. (NASDAQ:SNAK) (“Inventure Foods” or the
“Company”), a leading specialty food marketer and manufacturer,
today announced it has entered into a definitive asset purchase
agreement for the sale of its frozen business including the Rader
Farms® and Willamette Valley Fruit Company™ brands as well as
certain assets, rights and properties related to its frozen fruits,
vegetable blends, beverages, and frozen desserts business to Oregon
Potato Company, for total cash consideration of $50.0 million. This
strategic transaction is expected to be completed in September 2017
and represents an important step in Inventure Foods’ ongoing
strategic and financial review process to maximize shareholder
value.
“We are pleased to enter into an agreement for the sale of our
frozen business,” commented Terry McDaniel, Chief Executive Officer
of Inventure Foods. “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.”
The proceeds from the transaction, net of transaction costs,
will be used to repay in full the indebtedness under the Company’s
revolving credit facility with Wells Fargo Bank, National
Association and the other lenders, as well as to pay down
indebtedness under its term loan facility with BSP Agency, LLC and
the other lenders, as required under such credit
facilities.
Frank Tiegs, President of Oregon Potato Company, commented, “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.”
There can be no assurance that the Company's ongoing strategic
and financial review will result in any specific action, or any
assurance as to its outcome or timing. The Company does not intend
to comment further regarding the strategic and financial review
until the Board of Directors approves a specific action or
concludes its review.
About Inventure FoodsWith manufacturing
facilities in Arizona, Indiana, Washington, and Oregon, Inventure
Foods, Inc. (Nasdaq:SNAK) is a marketer and manufacturer of
specialty food brands in better-for-you and indulgent categories
under a variety of Company owned and licensed brand names,
including Boulder Canyon Foods™, Jamba®, Rader Farms®, TGI
Fridays™, Nathan's Famous®, Vidalia Brands®, Poore Brothers®, Tato
Skins®, Willamette Valley Fruit Company™, Bob's Texas Style® and
Sin In A Tin™. For further information about Inventure Foods,
please visit www.inventurefoods.com.
About Oregon Potato Company Oregon Potato
Company (OPC) is an innovative grower and processor of potatoes,
vegetables and fruits. OPC is committed to innovation, quality,
cost effectiveness and customer service. OPC’s plants span three
states with operations in Washington, Oregon and Idaho. Each
location is supported by locally owned farms.
As a private grower, OPC offers complete focus, from farming
through total processing. OPC is committed to innovation, quality
and customer service and dedicated to sustainable agricultural
practices. Our broad array of farming and processing technologies
allow us to be the leader in Industrial, foodservice and private
label retail markets. For further information about OPC, please
visit www.oregonpotato.com.
Contact Katie Turner, ICR (646) 277-1200
Note Regarding Forward-looking Statements
This press release contains forward-looking
statements, including, but not limited to, the expected completion
of the transaction with OPC, the Company’s intent to use the
proceeds from the transaction with OPC to reduce its debt and
improve its overall financial flexibility, the Company’s ability to
focus on the final phase of its strategic review process, and the
Company’s ability to complete a strategic alternative or
transaction to increase shareholder value. Because such
statements include risks and uncertainties, actual results may
differ materially from those expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ from the forward-looking statements contained in this
press release and that may affect the Company's prospects in
general include, but are not limited to, ability to execute
strategic initiatives, ability to continue as a going concern,
general economic conditions, increases in cost or availability of
ingredients, packaging, energy and employees, price competition and
industry consolidation, product recalls or safety concerns,
disruptions of supply chain or information technology systems,
customer acceptance of new products and changes in consumer
preferences, food industry and regulatory factors, interest rate
risks, dependence upon major customers, dependence upon existing
and future license agreements, the possibility that the Company
will need additional financing due to future operating losses or in
order to implement the Company's business strategy, acquisition and
divestiture-related risks, the volatility of the market price of
the Company's common stock, and such other factors as are described
from time to time in the Company's filings with the Securities and
Exchange Commission. All forward-looking statements are based
on information available to the Company as of the date of this news
release, and the Company assumes no obligation to update such
statements.
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