(UPDATED COVERAGE, April 25) Apio, Inc., has acquired GreenLine Foods Inc., bringing the California shipper into the value-added green beans business and giving it a substantial presence on the East Coast.
Guadalupe, Calif.-based Apio announced the acquisition of Perrysburg, Ohio-based GreenLine Foods April 23. Apio is a subsidiary of Menlo Park, Calif.-based Landec Corp.
The deal brings together two value-added brands: GreenLine’s fresh-cut green bean products and Apio’s Eat Smart bag and tray vegetables.
The acquisition of GreenLine Foods from private equity firm The Riverside Company includes production facilities in Bowling Green, Ohio; Hanover, Pa.; Vero Beach, Fla.; and Pico Rivera, Calif.
Also included are distribution centers in Chester, N.Y., and Rock Hill, S.C., plus a fleet of trucks.
Apio sales manager Sandy Cleary welcomed the deal.
“We’re strong on broccoli and cut vegetables, but looking for new items to complement that,” she said. “So it’s a good fit for both companies.”
There are no plans to change either brand, Cleary said.
“Our main goal is to get to know the business,” she said. “We do not expect to be doing any layoffs in the near future. It’s been a very successful business to date. We believe part of the reason for GreenLine’s success is their superior quality.”
Apio acquired GreenLine Foods for $63 million in cash and financing, said Jeffery Kraetsch, Apio corporate controller. That included $31.8 million in term financing and about half of a $25 million credit line. Norwalk, Conn.-based GE Capital provided the term financing and the credit line, a five-year working capital line.
GreenLine’s revenues are projected at $95 million to $100 million for fiscal year 2013, according to a Landec news release. Combined, the Eat Smart and GreenLine labels are present in about 80% of North American retail grocery stores, Cleary said.
Over time, Apio plans to introduce single-order entry and streamline transportation for the two brands.
“It is unique to find two companies so well suited for each other,” Ron Midyett, Apio chief executive officer, said in a news release. “The GreenLine team brings deep operational, sourcing and transportation expertise, as well as solid industry relationships.”
“Apio’s industry leadership, strong new product innovation capabilities and investment in packaging technologies will create new opportunities for growth for the GreenLine brand,” Jeff Rettig, senior vice president of operations at GreenLine Foods, said in the release.