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December 14, 2021

US salads supplier Taylor Farms buys clutch of Curation Foods assets

The deal covers operations generating more than US$360m in revenue in the 12 months to 29 August.

Taylor Farms, the US salads supplier, has bought a batch of Curation Foods assets in a deal worth more than US$73m.

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  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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Landec Corporation, which is upping its focus on its business in the pharmaceutical industry, said it had sold Curation Foods’ fresh packaged salads and vegetables to Taylor Farms for $73.5m.

The deal, which includes the Eat Smart brand, covers operations generating around $366m in revenue in the 12 months to 29 August.

In a statement, Taylor Farms said the purchase would help it meet “consumers’ growing demand for chopped salads and fresh-cut vegetables”. The deal follows a move in August to enter the market for leafy greens grown in indoor farms through an investment in Pure Green Farms.

Bruce Taylor, Taylor Farms’ chairman and CEO, added: “This acquisition will enhance our commitment to assured supply for our customers with the addition of a sixth Taylor Farms source-based production facility, this one located in the fertile Santa Maria Valley.”

Curation Foods was formed in 2019 when Landec decided to change its food business’ name from Apio to focus on brands.

Landec said at the time the move completed its transition from a packaged vegetable company to a branded, natural foods group and unified five plant-based brands.

In January 2020, the group laid down Curation Foods a series of goals in an attempt to return it to profitability. Landec also set about closing some Curation Foods sites.

A month later, the company announced it was exploring options – including a possible sale – for the “legacy vegetable bag and tray business” housed within its Curation Foods division. The company said at the time those assets, which included Eat Smart and private-label brands, generated net sales of $160m in fiscal 2019. In August that year, the company sold Curation Foods factories in Pennsylvania and California.

Dr. Albert Bolles, Landec’s CEO, said yesterday the deal with Taylor Farms “demonstrates ongoing efforts to extract value from our non-core assets and re-orient the company around our rapidly growing Lifecore Biomedical business”.

He added: “We will be deploying the net proceeds from the sale directly toward debt paydown, which will reduce our balance sheet leverage and allow us to channel our resources to more fully support the growth and expansion of the Lifecore Biomedical business. While there’s more work to do, the company is laser-focused on the business and assets that are growing at a greater rate, produce more attractive margins, and have value that is presently underappreciated.

“Going forward, we will maintain our continued commitment to maximise the value of our Lifecore and remaining Curation Foods businesses. We are excited about the path ahead.”

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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