Business
Lifecore Biomedical Announces Sale of Curation Foods’ Avocado Products Business
Proceeds to be used for debt paydown CHASKA, Minn., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (“Lifecore” or the “Company”), a fully
About this update from Lifecore Biomedical, Inc.
[{"type":"text","content":"Proceeds to be used for debt paydown\nCHASKA, Minn., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (“Lifecore” or the “Company”), a fully integrated contract development and manufacturing organization (“CDMO”), today announced that it has completed the sale of its Curation Food’s avocado products business for $17.5 million in cash, subject to certain customary net working capital adjustments. James G. Hall, President and Chief Executive Officer of Lifecore Biomedical, commented, “This transaction marks another step in our strategy to monetize our remaining Curation Foods assets and unlock the potential of Lifecore as a standalone CDMO business. We are pleased to demonstrate progress toward this outcome with the sale of the avocado products business, and remain focused on exploring opportunities to monetize our final remaining Curation Foods asset, the O Olive Oil & Vinegar® business. We look forward to updating the market on our progress in due course.” The Company completed the simultaneous sign and close of the transaction on February 7, 2023. Net proceeds from the transaction will be used to repay borrowings under the Company’s credit facilities, which the Company believes will drive further deleveraging and strengthen the Company’s financial position, allowing management to focus greater resources and investment to Lifecore. The transaction was effectuated through the sale of all of the outstanding equity of Yucatan Foods, LLC, an indirect wholly owned subsidiary of Lifecore and Curation Foods, which included its Yucatan® and Cabo Fresh® brands, as well as the associated manufacturing facility and operations in Guanajuato, Mexico. The results of operations related to the Curation Foods avocado products business will be reported as discontinued operations beginning in the fiscal third quarter of 2023. About Lifecore BiomedicalLifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of complex sterile injectable pharmaceutical products in syringes and vials. As a leading manufacturer of premium, injectable grade Hyaluronic Acid, Lifecore brings more than 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeut...