Our piece, Ready Pac/Bayside Deal Leaves One Wondering What Happened To Univeg, reported on Ready Pac receiving an investment from Bayside Capital, a private equity firm.
We also mentioned how odd it was that the announcement did not mention anything about the previously announced deal with Univeg.
Now, both Univeg and Ready Pac have issued a joint statement:
4/12/2007 — UNIVEG AND READY PAC FOODS ANNOUNCE U.S. INTENTIONS
Univeg and Ready Pac Foods announced today that they will continue to work on developing strategic joint ventures which will better serve the US marketplace. This effort will leverage the strengths, resources and expertise of both companies.
Univeg is operational in 21 countries, serving on a daily basis fresh produce, based on long lasting relationships with leading retailers. The group’s activities are split up in 5 divisions:
Fruit & Vegetables
Convenience Food: fresh-cut fruit and vegetables, ready-to-eat meals
Distribution: operating distribution centers’ for fresh food
Flowers, Plants & Bulbs
The company realizes an annual turnover of more than 2.5 billion dollars. For more information, visit www.univeg.com
About Ready Pac:
California-based Ready Pac is a premier producer of convenience fresh foods, including fresh-cut produce. With processing facilities in various locations in the U.S., Ready Pac’s award-winning salads, fresh-cut fruit and vegetables are distributed in supermarkets and restaurant chains across North America. For more information, visit www.readypac.com
It is still a little wacky. Normally you would expect to have a joint statement saying the two parties jointly agreed to terminate the letter of intent. That this announcement isn’t in their statement leaves open the question of whether there is really mutual agreement on the issue.
It is hard to know what to make regarding the “strategic joint ventures” that the release mentions. Are there specific plans? Or is this just a spoonful of sugar to make the medicine of parting ways go down better?
We do understand that Univeg has some specific opportunities to sell fresh-cuts in the United States. If they want to capitalize on these opportunities, they will probably need a deal, if not with Ready Pac, with someone else, and soon.