Greenyard to divest horticulture business segment for $141m

Belgium-based fruit and vegetable canning company Greenyard has signed an agreement to sell its horticulture business segment to independent Belgian investment group Straco for a total consideration of €120m ($141m).

The horticulture business is engaged in the production of media and mushroom substrates, which are exported to more than 60 countries with 14 facilities in Europe and Russia.

Under the agreement, all operations and assets of Greenyard Horticulture will be transferred to Straco.

Greenyard CEO Hein Deprez said: “We are pleased to have reached an agreement with Straco for the divestment of our horticulture segment. Straco shares our belief in the importance of good quality substrates and growing media to secure sustainable and healthy fruit and vegetables in the future.

“We remain keen on cooperating with growers and retailers to develop with the new concepts that create value for all parties in the chain.

“This reorientation towards our fresh and long fresh segments will allow more focused management’s attention and a faster implementation of impactful operational improvement actions for internal profitable growth. We feel that this divestment is an important step towards a stronger Greenyard.”

Both companies will focus on identifying new ways to further develop concepts of sustainable growth of healthy and tasteful produce.

Completion of the transaction is subject to customary closing conditions, including regulatory approvals. The deal is expected to be completed during Q4 of the fiscal year ending 2019.

Deprez further added: “Furthermore, the divestment of the horticulture segment, in combination with the agreement with the lenders and the ongoing deleveraging and improvement plans, will secure Greenyard of the necessary means for the repayment of the retail bond in the summer of next year.”