Apio Inc, a wholly owned subsidiary of Landec Corporation (Nasdaq:LNDC), has acquired GreenLine Foods Inc from The Riverside Company, a global private equity firm.
GreenLine, headquartered in Perrysburg OH, processes and markets fresh-cut green beans. This acquisition is expected to be immediately accretive to Landec. For Landec’s upcoming fiscal year 2013 beginning May 28, 2012, GreenLine’s revenues are projected to be about $95 million to $100 million.
The acquisition combines two brands in the fresh-cut produce market: the Apio Eat Smart brand and the GreenLine brand, resulting in combined market presence in about 80% of North American retail grocery store sites, supported by GreenLine’s East Coast processing and distribution facilities. GreenLine’s primary production facilities are in Bowling Green OH and Hanover PA. Other production facilities are in Vero Beach FL and Pico Rivera CA with distribution centers in Chester NY and Rock Hill SC. The addition of GreenLine’s footprint on the East Coast and dedicated fleet of privately operated trucks complements and strengthens Apio’s California base of operations.
Under the agreement with Riverside, Apio acquired all the outstanding equity interests of GreenLine for $63 million in cash with no assumed debt. The agreement also includes future earn-out potential for Riverside of up to $7 million based on GreenLine achieving certain financial targets during calendar year 2012. In conjunction with the acquisition, Apio obtained $31.8 million in term financing secured by Apio’s and GreenLine’s fixed assets.