Seneca Foods Corporation Acquires 50% of Truitt Bros.; Terms Undisclosed
Seneca Foods Corporation (the "Company") (NASDAQ: SENEA) and Peter W. Truitt have entered into a Share Purchase Agreement whereas the Company has acquired Peter's 50% ownership interest in Truitt Bros., Inc., and directly related holdings. The effective date of the transaction is April, 1, 2014. The management of Truitt Bros., Inc. will remain unchanged. The remaining terms of the Share Purchase Agreement are currently not being disclosed.
In addition to the aforementioned Share Purchase Agreement, the Company also entered into an Agreement with David Truitt and other shareholders. This Agreement grants the Company the right to acquire the remaining 50% ownership of Truitt Bros., Inc. at a future point in time.
"We are very excited about our investment in Truitt Bros. Truitt Bros. is a leader in developing shelf stable meals in trays and pouches," stated Kraig Kayser, Seneca Foods' President and CEO. "On behalf of the Seneca team, we look forward to working with David and the entire Truitt Bros. organization."
David Truitt, Truitt Bros. Inc. President and CEO stated that, "We are pleased with Seneca's investment into Truitt Bros. We have known Seneca for years, and share similar backgrounds and interests in food processing. We have high regards for their organization, and we look forward to the future with Seneca Foods being our partner."
About Seneca Foods Corporation Seneca Foods is North America's leading provider of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from over 3,000 American farms. Seneca holds the largest share of the retail private label, food service, and export canned vegetable markets, distributing to over 90 countries. Products are also sold under the highly regarded brands of Libby's®, Aunt Nellie's®, READ®, Seneca Farms® and Seneca labels, including Seneca snack chips. In addition, Seneca provides vegetable products under an alliance with General Mills Operations, LLC, a subsidiary of General Mills, Inc., under the Green Giant label. Seneca's common stock is traded on the Nasdaq Global Stock Market under the symbols "SENEA" and "SENEB". SENEA is included the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.
About Truitt Bros., Inc. Co-founded and operated by brothers David and Peter Truitt, Truitt Bros. is a third-generation family-owned food processor with operations in Salem, Oregon and East Bernstadt, Kentucky. Leaders in bringing quality and innovation to the industry, the company provides shelf stable products for a wide variety of establishments, from restaurants and businesses to health care and retailers. As part of their commitment to preservation of natural resources, as well as positive employee relations and environmentally responsible manufacturing practices, Truitt Bros. became the first food processor in the country to earn Food Alliance certification in May of 2006. In 2010, the company was recognized as one of Oregon's leaders in sustainable approaches to business and honored by Governor Kulongoski with an Oregon Sustainability Award.
Forward-Looking Statements Statements that are not historical facts, including statements about management's beliefs or expectations, are forward looking statements as defined in the Private Securities Litigation Reform Act (PSLRA) of 1995. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in Seneca Foods Corporation's filings with the SEC, including the disclosure under the heading "Risk Factors" in Seneca Foods' Annual Report on Form 10-K. There can be no assurance that the merger will close on the expected schedule or that the merger will be consummated at all. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
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