Curation Foods owner Landec to divest Hanover manufacturing facility

US-based Landec has entered a definitive agreement to divest its Hanover manufacturing facility and related assets for $8.7m to an undisclosed buyer.

The operator of businesses such as Curation Foods and Lifecore Biomedical (Lifecore), the company will be shifting Hanover facility operations to its other facilities in Guadalupe, California, and Bowling Green, Ohio.

Landec’s president and CEO Dr Albert Bolles said: “The agreement to sell the Hanover facility announced today, together with the completion of our other previously announced asset sales related to the Curation Foods business, delivers on the company’s commitment to streamline the business by divesting non-strategic assets to help deliver sustainable profitable growth.

Landec’s move to divest its facility is part of its Project SWIFT, which aims to create shareholder value across the enterprise.

Project SWIFT is said to have been designed to help the company in identifying new opportunities and focus on maximising strategic assets, as well as optimising operational network and organisation.

Completion of the deal is subject to customary closing conditions and expected to take place in the first week of next month.

Last month, the company concluded the asset sale and lease assumption of its salad dressing manufacturing facility in Ontario, California, in a $4.85m deal.

In February, Landec announced that it is exploring new opportunities, including the divestiture of its Curation Foods bag and tray business.

The Curation Foods unit also includes Eat Smart and private label brands.