Northland Cranberries sells branded juice business to Apple & Eve
Gets approximately $10.8 million in cash for the deal.
23/02/05 Northland Cranberries, Inc. has announced that it has sold its branded juice business to Apple & Eve, LLC. The sale includes certain raw materials, work-in-process and finished goods inventories, the Northland, Treesweet and Awake brands, as well as an assignment of the Seneca brand license agreement between Northland and Seneca Foods Corporation. Apple & Eve, located in Port Washington, New York, is one of the largest independently owned juice companies in the United States.
As consideration for the assets purchased, Apple & Eve paid Northland approximately $10.8 million in cash, subject to certain adjustments. Northland and Apple & Eve also entered into a cranberry concentrate supply agreement under which Apple & Eve will purchase approximately $6.7 million of cranberry concentrate during the next 12 months. The supply agreement also provides Apple & Eve the option, commencing in October 2005 and continuing for a period of nine years, to purchase cranberry concentrate from Northland for use in the brands acquired by Apple & Eve in this transaction.
Northland intends to continue to operate its remaining cranberry properties, manage its grower contracts with 44 growers in Wisconsin and Oregon and sell cranberry concentrate to Ocean Spray Cranberries, Inc. and to Apple & Eve pursuant to contractual arrangements.
