Rica Foods, Inc. (AMEX: RCF) announced today it has signed a letter of intent to acquire, in the near future, 60% of the total outstanding members equity of Bounty Group Holding, LLC, (Bounty). Bounty, through its wholly owned subsidiary, Bounty Fresh, LLC, (BFresh) is principally engaged in the marketing and sales of fresh produce in the U.S. The company is currently controlled by Mr. Trond S. Jensen, a Director of RCF. Terms and conditions are currently under negotiation.
BFresh is a Florida-based fresh produce company, with an established United States customer base such as Kroger, Publix, A & P, SuperValue, and Costco. BFresh recently acquired the fresh produce operations of Chestnut Hill Farms, Inc. (“Chestnut”), a subsidiary of Seaboard Corporation, and the right to use their well-recognized brand name, “Chestnut Hill Farms.” Pursuant to the terms and conditions of the Chestnut acquisition, Seaboard Corporation continues its involvement through a 5% interest in Bounty, and will appoint a member to the Board of Directors of Bounty.
“RCF considers U.S. revenue as a plus. That combined with the marketing, sales and logistics services provided by Bounty, should be added value to our business,” said Mr. Calixto Chaves, RCF’s Chairman and CEO. “Bounty also has more than 13 years of experience in exports to Asia. The company has a proven marketing and sales team that complements and solidifies our own distribution and logistics network. We expect that the Bounty acquisition synergies will enhance our overall trade positions. Mr. Jensen, owner and CEO of Bounty, has been brought to the Board of Directors of RCF, based on his trade, distribution, and commerce expertise,” Mr. Chaves concluded.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more complete information concerning factors that could affect the Company’s results, reference is made to the Company’s registration statements, reports, or other documents filed with the Securities and Exchange Commission.