Inventure Foods Completes Strategic Sale of its Frozen Division
September 28 2017 - 4:05PM
Inventure Foods, Inc. (NASDAQ:SNAK) (“Inventure Foods” or the
“Company”), a leading specialty food marketer and manufacturer,
today announced it has completed 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, adjusted for estimated net working capital as of
September 22, 2017 and reduced for transaction costs.
The proceeds from the transaction were 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 credit
facility with BSP Agency, LLC and the other lenders, as required
under such credit facilities.
“We are pleased to complete the sale of our frozen business,
which represents a significant second step under our strategic and
financial business review,” commented Terry McDaniel, Chief
Executive Officer of Inventure Foods. “Going forward, our
management team and Board of Directors remain committed to the
Company’s ongoing strategic and financial review to maximize
shareholder value.”
Rothschild served as the Company’s financial advisor and DLA
Piper LLP (US) as its legal advisor for this transaction.
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 and Indiana, 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™, TGI Fridays™, Nathan's Famous®, Vidalia Brands®, Poore
Brothers®, and Tato Skins®, Bob's Texas Style®. 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 Company’s ongoing
strategic and financial review to maximize 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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