Landec Continues Progression of Transformation Plan for Curation Foods, Announcing Agreement to Divest Hanover Manufacturing ...
25 August 2020 - 10:00PM
Landec Corporation (Nasdaq: LNDC) (“Landec” or the “Company”), a
diversified health and wellness Company with two operating
businesses, Curation Foods, Inc. (“Curation Foods”) and Lifecore
Biomedical, Inc. (“Lifecore”), announced today the entry into a
definitive agreement to sell the Company’s Hanover manufacturing
facility and related assets for an aggregate purchase price of $8.7
million. The Company intends to consolidate its Hanover
facility operations into its facilities in Guadalupe, California
and Bowling Green, Ohio.
The agreement to divest the Hanover manufacturing
operations is the latest step of Project SWIFT, as the Company
continues to focus on creating shareholder value across the
enterprise. Project SWIFT is designed to identify opportunities to
transform the Company's business with a focus on maximizing
strategic assets, optimizing its operational network and
right-sizing the organization. The transaction is expected to close
in the first week of September, subject to customary closing
conditions. As previously announced on August 7, 2020, Landec
completed the asset sale and lease assumption of its
pre-operational salad dressing manufacturing facility based in
Ontario, California for $4.85 million.
“The agreement to sell the Hanover facility announced today,
together with the completion of our other previously announced
asset sales related to the Curation Foods business, delivers on the
Company’s commitment to streamline the business by divesting
non-strategic assets to help deliver sustainable profitable
growth,” said Landec’s President and CEO Dr. Albert Bolles. “While
we recognize that the execution of certain actions associated with
Project SWIFT has been challenging in light of the global pandemic,
we intend to continue to build on the significant progress made
with respect to our value creation plan and remain dedicated to
advancing our strategic vision and deleveraging the business under
these new conditions.”
About Landec Corporation
Landec Corporation (NASDAQ: LNDC) is a leading innovator of
diversified health and wellness solutions with two operating
businesses: Curation Foods, Inc. and Lifecore Biomedical, Inc.
Landec designs, develops, manufactures, and sells products for the
food and biopharmaceutical industry. Curation Foods is focused on
innovating and distributing plant-based foods with 100% clean
ingredients to retail, club and foodservice channels throughout
North America. Curation Foods is able to maximize product freshness
through its geographically dispersed family of growers,
refrigerated supply chain and patented BreatheWay® packaging
technology. Curation Foods brands include Eat Smart® fresh packaged
vegetables and salads, O Olive Oil & Vinegar® premium artisan
products, and Yucatan® and Cabo Fresh® avocado products. Lifecore
Biomedical is a fully integrated contract development and
manufacturing organization (CDMO) that offers highly differentiated
capabilities in the development, fill and finish of sterile,
injectable pharmaceutical products in syringes and vials. As a
leading manufacturer of premium, injectable grade Hyaluronic Acid,
Lifecore brings 35 years of expertise as a partner for global and
emerging biopharmaceutical and biotechnology companies across
multiple therapeutic categories to bring their innovations to
market. For more information about the Company, visit Landec’s
website at www.landec.com.
Important Cautions Regarding Forward-Looking
Statements
This press release contains forward-looking statements regarding
future events and our future results that are subject to the safe
harbor created under the Private Securities Litigation Reform Act
of 1995 and other safe harbors under the Securities Act of 1933 and
the Securities Exchange Act of 1934. Words such as “anticipate”,
“estimate”, “expect”, “project”, “plan”, “intend”, “believe”,
“may”, “might”, “will”, “should”, “can have”, “likely” and similar
expressions are used to identify forward-looking statements. All
forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ materially, including
such factors among others, as the timing and expenses associated
with operations, the ability to achieve acceptance of the Company’s
new products in the market place, weather conditions that can
affect the supply and price of produce, government regulations
affecting our business, the timing of regulatory approvals,
uncertainties related to COVID-19 and the impact of our responses
to it, the ability to successfully integrate Yucatan Foods into the
Curation Foods business, and the mix between domestic and
international sales. For additional information about factors that
could cause actual results to differ materially from those
described in the forward-looking statements, please refer to our
filings with the Securities and Exchange Commission (“SEC”),
including the risk factors contained in our most recent Quarterly
Report on Form 10-Q and Annual Report on Form 10-K. Forward-looking
statements represent management’s current expectations and are
inherently uncertain. Except as required by law, we do not
undertake any obligation to update forward-looking statements made
by us to reflect subsequent events or circumstances.
Contact Information:
Investor Relations
Jeff Sonnek
(646) 277-1263
jeff.sonnek@icrinc.com
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