Landec sells processing facility

Landec Corporation, a US developer and marketer of technology-based polymer products for food and agriculture, has announced that its food technology subsidiary, Apio, has sold its Reedley, California fruit processing facility.

The land and facility were sold for net proceeds of $2.2 million (€2.3m), resulting in a gain of approximately $480,000, which will be used to pay down long-term debt. The equipment in the facility has been leased and contains an option to buy the equipment at the end of the lease term.

An Apio strategic partner has purchased the facility, which the company claims will not adversely impact its tree fruit sales and marketing operations. Landec exited the business of processing tree fruit at the end of fiscal 2000, but remained focused on the sales and marketing area.

"Exiting the fruit processing operation has enabled the company to make more strategic use of our capital and human resources, resulting in expanded distribution for the fruit products the company markets,"​ noted Nick Tompkins, chief executive officer of Apio. "We have and will continue to develop strategic alliances with major growers to support the ongoing fruit sales and marketing programmes,"​ he added.

Apio's fruit division markets tree fruit and grapes under its Eat Smart and licensed Bari brands. The company is a major supplier of modified atmosphere packaging for high respiring produce such as broccoli, cauliflower and combinations of other vegetables.