The UniMark Group, Inc. (Nasdaq: UNMG), marketer, specialty producer and distributor of Sunfresh® brand citrus and tropical products today announced that it has completed the sale of UniMark’s rights to the Sunfresh® brand, its McAllen, Texas distribution center and certain inventory associated with the Sunfresh® brand for $14.5 million in cash, subject to adjustment for inventory levels to Del Monte Foods Company (NYSE: DLM).
Separately, Del Monte and UniMark executed a long-term supply contract under which UniMark agreed to produce chilled and canned citrus products for Del Monte at UniMark’s existing facilities in Mexico, and Del Monte agreed to purchase minimum quantities of such products from UniMark at agreed-upon prices. Also, Del Monte agreed to grant UniMark a long-term license for rights to the Sunfresh® brand for specific areas, including Europe, Asia, the Pacific Rim and Mexico.
The UniMark Group, Inc., headquartered in Bartonville, Texas is a vertically integrated citrus and tropical fruit growing, processing, marketing and distribution company with operations in Mexico and the United States. As an industry pioneer, it was the first company to introduce quality processed fruit in glass jars into the produce section.
Del Monte Foods Company, with net sales of $1.5 billion in fiscal 2000, is the largest producer and distributor of premium quality, branded processed fruit, vegetable and tomato products in the United States. The Del Monte brand was introduced in 1892 and is one of the best known brands in the United States. Del Monte products are sold through national grocery chains, independent grocery stores, warehouse club stores, mass merchandisers, drug stores and convenience stores. The Company also sells its products to the U.S. military, certain export markets, the foodservice industry and food processors. The Company operates fourteen production facilities in California, the Midwest, Washington, and Texas and six distribution centers.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs including, but not limited to, statements concerning the Company’s operations and financial performance and condition. For this purpose, statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competition products and pricing; market conditions and weather patterns that may affect the cost of raw material as well as the market for the Company’s products; risks related to product liability and recall; changes in the Company’s business environment, including actions competitors and changes in customer preferences; dependence on key management; changes in governmental laws and regulations, including income taxes; economic, political and social conditions in Mexico; exchange rate fluctuations and inflation; labor relations and costs; market demand for new and existing products; and other factors as may be discussed in the Company’s Report on Form 10-K for the year ended December 31, 1999, those factors listed under “Risk Factors” in the Company’s prospectus dated June 14, 1996 and other reports filed with the Securities and Exchange Commission.