Universal Corporation to acquire FruitSmart in the US

US-based agricultural products supplier Universal Corporation has signed a definitive agreement to acquire speciality fruit and vegetable ingredient processor FruitSmart for an undisclosed sum.

This acquisition is in line with Universal Corporation’s capital allocation strategy and is expected to provide a platform for the company to move into a new industry sector.

Established in 1982, FruitSmart is engaged in the processing of a range of fruits, including apples, grapes, blueberries, raspberries, cherries, blackberries, pears, cranberries and strawberries.

The company supplies blends, purees, fibres, seed powders, concentrates and juices to food, beverage and flavour companies across the US and other countries. It operates two manufacturing facilities in the region.

FruitSmart president Terry Chambers said: “By joining Universal Corporation, FruitSmart and our employees will benefit from Universal’s global agri-products services and supply chain management expertise, as well as the greater resources and enhanced scale of a larger, public company.

“Importantly, we will maintain our continued commitment to outstanding product quality and our strong relationships with our growers and our customers.”

Universal Corporation intends to fund the acquisition with its available funds and existing borrowing capacity. It expects to close the transaction in the current fiscal year, subject to conditions.

Chairman, president and CEO of Universal Corporation, George Freeman said: “Since outlining our capital allocation strategy in May 2018, we have been identifying a pipeline of strategic opportunities in adjacent markets around our core strengths: leveraging our highly localised rural infrastructure to source and process high-value, non-commodity, semi-perishable varietals from a large, reliant grower base for customers who demand fully traceable and compliant inputs.”